I’m writing in response to the letter published on May 22nd titled “Focus on lowering tax rates, not appraisals”. While I agree with the general premise, the writer implies that appraisal districts base their appraisals on comparable sales data.
Anyone who has ever financed a home knows that the lender requires an appraisal in order to approve the loan. These appraisals are conducted with a thorough review of comparable sales data on like homes in a close proximity to the home in question. An on-site review of the inside and outside of the property is a vital part of the appraisal. I’m not certain that takes place regularly in appraisal districts.
What does happen is that the taxing entities establish a tax rate and a budget for the upcoming year. The appraisal district then has the task of making the math work. How much taxable value must be applied to each property to make the aggregate total meet the budget required for the various taxing entities. I agree that tax rates should flatten or lower as property values increase, but that assumes the taxing entities are being good stewards of the funds raised. I also agree that property value appraisals should be made on values, not part of a math equation that adds up the sum of annual budgets.
Steve Boynton, Kerrville