Lets's Be Real About Appraisals
Print this page by Alden Nellis, August 20, 2008 Let’s Be Real About Appraisals By Alden Nellis It is time for the Central Appraisal District (CAD) of Johnson County to get realistic about property appraisals. I have repeatedly heard statements like “If one of those !X+! appraisers would offer me the amount he has my property appraised for he would own it!” In the past the CAD has treated property values as though we were in Dallas, Bexar or Travis counties. We are not. To the contrary, we are economically close to bottom of the heap. We are currently and may for the next few years enjoy an economic high due to drilling activity in developing the Barnett Shale. This is no guarantee of long-term growth. The “oil patch” is full of ghost towns whose leaders thought the drilling boom was only the beginning of prosperity. When the drilling stopped, the town died or nearly so. The mineral owners continued to prosper, but that was not enough to support the prosperity the whole town had planned. It is unrealistic for the CAD to assume the drilling boom indicates long-term prosperity with escalating property values. It is wrong for the CAD to escalate property values to raise more revenue. When the drilling stops, the drillers give up their motel rooms, apartments or RV spaces and leave town. They no longer eat at local restaurants and bars, shop at local grocery stores or pay for local entertainment. They don’t buy new pickups here, or electronics, or clothes, or gasoline. Those oil wells just keep on pumping with minimal maintenance and most of the people are gone. When the Texas legislature created Central Appraisal Districts, the purpose was to create a uniform, fair taxing system throughout each county. Anyone who now protests the appraised value of his property will likely get it reduced, especially if he is a person of influence. The timid or meek who do not protest get soaked. The meek shall inherit the big tax bill. That was not the intent of the legislatures. Property appraisals should be kept in line with the growth and economy within each county. The bureaucrats at the CAD need to get realistic about property values and quit trying to rake in the cash while they can. That is not their job. Their job is to provide a fair, uniform valuation system as a basis for taxation by the various taxing entities. They have failed because they have lost sight of their purpose. Who suffers from the CAD’s misguided valuation system? First, the property owning taxpayers. Second, the school district will suffer. With the artificial inflation of property values and without any significant growth of the school population, the school districts will become “property rich” and will have to send money to the state as a Chapter 41 school. We have no real growth in Cleburne. The motels and hotels are full, but there is no influx of students in the schools. That means we have a lot of migrant workers. Sales tax collections are up and office spaces filled. That means the migrant workers are occupying space and spending money. That is all good and makes the economy look healthy. In a few years the drilling activity will disappear. If we have not worked to build permanent industry to take its place, we will be back to square one with a lot of excess office space and empty motel rooms. The CAD must get its head out of the sand and realize that the temporary economic boom is not permanent growth and then base its appraisals on that harsh fact. I am sure it is great fun for them to artificially inflate values and make it look like we have twice the wealth we really have. However, by living in that fantasy world they are setting us and our school districts up for a hard fall. It would be a real shame if a few bureaucrats, playing their fantasy games, are able to inflict so much pain and suffering on everyone. Let the county judge and commissioners know how you feel about the CAD.

Lets's Be Real About Appraisals

by Alden Nellis, August 20, 2008

Let’s Be Real About Appraisals
By Alden Nellis

It is time for the Central Appraisal District (CAD) of Johnson County to get realistic about property appraisals. I have repeatedly heard statements like “If one of those *!X+!* appraisers would offer me the amount he has my property appraised for he would own it!”

In the past the CAD has treated property values as though we were in Dallas, Bexar or Travis counties. We are not. To the contrary, we are economically close to bottom of the heap. We are currently and may for the next few years enjoy an economic high due to drilling activity in developing the Barnett Shale. This is no guarantee of long-term growth. The “oil patch” is full of ghost towns whose leaders thought the drilling boom was only the beginning of prosperity. When the drilling stopped, the town died or nearly so. The mineral owners continued to prosper, but that was not enough to support the prosperity the whole town had planned.

It is unrealistic for the CAD to assume the drilling boom indicates long-term prosperity with escalating property values. It is wrong for the CAD to escalate property values to raise more revenue.

When the drilling stops, the drillers give up their motel rooms, apartments or RV spaces and leave town. They no longer eat at local restaurants and bars, shop at local grocery stores or pay for local entertainment. They don’t buy new pickups here, or electronics, or clothes, or gasoline. Those oil wells just keep on pumping with minimal maintenance and most of the people are gone.

When the Texas legislature created Central Appraisal Districts, the purpose was to create a uniform, fair taxing system throughout each county. Anyone who now protests the appraised value of his property will likely get it reduced, especially if he is a person of influence. The timid or meek who do not protest get soaked. The meek shall inherit the big tax bill. That was not the intent of the legislatures. Property appraisals should be kept in line with the growth and economy within each county.

The bureaucrats at the CAD need to get realistic about property values and quit trying to rake in the cash while they can. That is not their job. Their job is to provide a fair, uniform valuation system as a basis for taxation by the various taxing entities. They have failed because they have lost sight of their purpose.

Who suffers from the CAD’s misguided valuation system? First, the property owning taxpayers. Second, the school district will suffer. With the artificial inflation of property values and without any significant growth of the school population, the school districts will become “property rich” and will have to send money to the state as a Chapter 41 school.

We have no real growth in Cleburne. The motels and hotels are full, but there is no influx of students in the schools. That means we have a lot of migrant workers. Sales tax collections are up and office spaces filled. That means the migrant workers are occupying space and spending money. That is all good and makes the economy look healthy. In a few years the drilling activity will disappear. If we have not worked to build permanent industry to take its place, we will be back to square one with a lot of excess office space and empty motel rooms.

The CAD must get its head out of the sand and realize that the temporary economic boom is not permanent growth and then base its appraisals on that harsh fact. I am sure it is great fun for them to artificially inflate values and make it look like we have twice the wealth we really have. However, by living in that fantasy world they are setting us and our school districts up for a hard fall. It would be a real shame if a few bureaucrats, playing their fantasy games, are able to inflict so much pain and suffering on everyone.

Let the county judge and commissioners know how you feel about the CAD.