Appendix 1-8 Appendix 9-14 Appendix 15 Appendix 16-19
Sec. 5.07. Property Tax Forms and Records Systems.
(a) The comptroller shall prescribe the contents of all forms necessary for the administration of the property tax system and on request shall furnish sufficient copies of model forms of each Type to the appropriate local officials. The comptroller may require reimbursement for the costs of printing and distributing the forms.
(b) The comptroller shall make the contents of the forms uniform to the extent practicable but may prescribe or approve additional or substitute forms for special circumstances.
(c) The comptroller shall also prescribe a uniform record system to be used by all appraisal districts for the purpose of submitting data to be used in the annual studies required by Section 5.10 of this code and by Section 403.302, Government Code. The record system shall include a compilation of information concerning sales of real property within the boundaries of the appraisal district. The sales information maintained in the uniform record system shall be submitted annually in a form prescribed by the comptroller.
Acts 1979, 66th Leg., p. 2222, ch. 841, Sec. 1, eff. Jan. 1, 1980. Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec. 4, eff. Sept. 1, 1991; Acts 2003, 78th Leg., ch. 1183, Sec. 4, eff. June 20, 2003.
Uniform Standard of Professional Appraisal Practice Standards
The USPAP Standards may be obtained from the Appraisal Foundation,1029 Vermont Avenue, NW, Suite 900 Washington, DC 20005-3517, Phone: 202/347-7722, FAX: 202/347-7727, or they may be viewed on the Internet at the following location: www.appraisalfoundation.org.
International Association of Assessing Officers Standards
International Association of Assessing Officers (IAAO) Standards of Assessment Practice. The standards can be obtained from the IAAO Office, 130 East Randolph St., Suite 850, Chicago, IL, 60601. Phone 312/819-6100, Fax 312/819-6149, Web site: www.iaao.com.
Appraisal Standards Review Protocol
Determine County Appraisal District's Compliance with Appraisal Standards and State Laws.
Review of the Board of Directors.
The quality of the property tax system depends on the appraisal district's Board of Directors. Individuals serving on the Board of Directors bring to the board knowledge, judgment and expertise in establishing policies and procedures for the district's organization and operation.
Activities to be Performed.
A. Examine the current budget for the District for compliance with Texas Tax Code requirements as set forth in Section 6.06 and where deviations are noted, discuss the deviations and suggest possible remedies;
B. Examine the most recent District financial audits and determine how the District has addressed the findings in the management letter or any noted material weaknesses. If material weaknesses are present, make specific recommendations for immediate remediation if the District has not already taken steps to rectify the situation. Discuss any findings that have not been remedied and suggest ways to address these issues; and
C. Examine all contracts entered into by the District for the last year to determine compliance with the Tax Code and Subchapter C, Chapter 271, Local Government Code. Where deviations are noted, discuss the deviations and make recommendations to bring the District into compliance with state laws and regulations.
Review of Appraisal District Policies, Procedures & Operations.
In organizing and administering a county appraisal district, the Chief Appraiser is responsible for hiring, firing, and training personnel, for ensuring compliance with a wide range of legal requirements and for the maintenance of policies and procedures for the effective appraisal district office operations.
Activities to be Performed.
A. Review the District's policies and procedures and note and discuss all efforts aimed at compliance and note any deviations from law, regulations or rules. Make comprehensive, well-reasoned recommendations to remediate any exceptions or non-compliance found to be applicable;
B. Examine the District's application forms to determine whether the forms are in compliance with Comptroller's Rules found at 34 Texas Administrative Code (TAC) Sections 9.402, 9.415, 9.417, and 9.419. Where applications do not comply with any of the foregoing rules, the exceptions or non-compliance must be identified, noted and recommendation must be made to outline the necessary changes required to achieve full compliance;
C. Examine a sample of the District's appraisal records to determine whether the records conform to the requirements set forth in Comptroller's Rule found at 34 TAC Section 9.3059, as well as with Section 26.01, Tax Code.
D. Examine the District's documentation for evidence of compliance with certification of the appraisal roll to each taxing unit as required by law. If certifications were not done timely, determine the reason for the delay and determine what actions have been taken to ensure compliance in the future. Additionally, where applicable, make recommendations for improvements that will ensure full compliance.
Evaluation of the Appraisal District's Information Processing System(s).
Conduct a comprehensive examination and evaluation of the information processing system, including the systems and information technology operations, in each county appraisal district reviewed.
Activities to be Performed.
A. Examine documentation on the real property discovery methods utilized by the District to determine whether the District is in compliance with Section 23.12, Tax Code, as well as IAAO and IAAO on Personal Property. Where deviations are noted, discuss and make recommendations for improvement;
B. Examine the internal control mechanisms within the District's information management system(s) to determine whether sufficient controls exist to ensure uniformity and accuracy of appraisals. Evidence that additional controls may be needed may be found by examining measures for uniformity, such as a ratio study, as outlined in the Uniform Standards of Appraisal Practice (USAP). Where control weaknesses are noted, discuss and make recommendations for improvement;
C. Examine the District's method of obtaining and entering sales information to determine if the methods used are in compliance with USAP. Where system or procedural weaknesses are noted, discuss and make recommendations for improvement;
D. Examine the District's method for verifying and confirming sales data gathered to determine whether the methods used are in compliance with the USAP. Where system or procedural weaknesses are noted, discuss and make recommendations for improvement;
E. Examine the District's method of maintaining its sales files, including the written procedures for maintaining the District's sales file. In this regard, check the District's procedures for adequacy. Where system or procedural weaknesses are noted, discuss and make recommendations for improvement;
F. Examine all documentation and output to determine whether the current District information system adequately ensures compliance with applicable Comptroller rules; and
G. Determine whether the District is in compliance with Tax Code on granting, verifying, and denying exemptions, and or special appraisals, as shown in Subchapters A, B, and C of the Tax Code. Where system or procedural weaknesses are noted, discuss and make recommendations for improvement.
Review District Staffing, Personnel Qualifications & Positions.
Conduct a comprehensive examination and evaluation of the District's Staffing, Personnel Qualifications, and the system of positions, as well as assess the human resources in the District available to perform District functions in each county appraisal district reviewed.
Activities to be Performed.
A. Examine the qualifications of District staff to determine compliance with certifications and other legal requirements. Note any areas of deviation from the law and recommend improvements; and
B. Examine the District's policies on staff conflicts of interest and note any deviations from law, as well as make recommendations and commendations for achieving full compliance.
Compliance with Generally Accepted Appraisal Practices; Equality & Uniformity
of Appraisal Standards.
In general, in appraisal circles there are three approaches to value - cost, income, and market - that a Chief Appraiser must consider in determining the market value of property. The Chief Appraiser must consider all three and use the method most appropriate in appraising a particular property. These three approaches are outlined below.
Additional information about the approaches to determining or appraising value may be found in appraisal textbooks. Appraisers usually determine the value of producing mineral deposits-such as oil, gas, and coal-by using the income approach to value. Most appraisal districts contract with consultants to appraise mineral properties. The Chief Appraiser can provide information concerning the method used to appraise certain mineral properties.
When using the cost method of appraisal, the appraiser will:
- use cost data obtained from generally accepted sources;
- adjust appropriately for physical, functional, or economic obsolescence;
- make available to the public on request, for a reasonable charge, cost data developed and used by the chief appraiser on properties within a property category;
- state clearly the reason for any variation between generally accepted cost data and locally produced cost data, if the data vary by more than 10 percent; and
- make available to a property owner on request all applicable market data that demonstrates the difference between an improvement's replacement cost and the improvement's depreciated value.
When using the income method of appraisal, the appraiser will:
- analyze comparable rental data available to the chief appraiser or the potential earnings capacity of the property, or both, to estimate the gross income potential of the property;
- analyze comparable operating expense data available to the chief appraiser to estimate the operating expenses of the property;
- analyze comparable data available to the chief appraiser to estimate rates of capitalization or rates of discount; and
- base projections of future rent or income potential and expenses on reasonably clear and appropriate evidence.
When using the market data comparison method of appraisal, the appraiser will use comparable sales data and adjust the comparable sales data to the subject property.
Special Use Property Appraisals.
The Tax Code also requires appraisers to use special methods or principles for the following Type of property: Land qualifying for agricultural or timber appraisal (Chapter 23, subchapters C, D, E and H); (See Appraisal Standards for Uniformity and Equality as well as Tax Code, Sections 23.01, 1.43, and 42.26).A. Examine use of special methods by district. Report any findings.
International Association of Assessing Officers (IAAO) Standards on Ratio Studies and Uniform Standards of Professional Appraisal Practices Standard 6.
Activities to be Performed.
1. Examine the district's re-appraisal plan for the last two years to see if it complies with Section 25.18, Tax Code, and the guidelines set out in the Comptroller's Board of Directors Manual. Where deviations are noted, discuss and make recommendations for improvement;
2. Examine appraisal manuals for each category of property to determine compliance with the Uniform Standard of Professional Appraisal Procedures and International Association Assessing Officers (IAAO) Standard on Appraisal. Where deviations are noted, discuss and make recommendations for improvement;
3. Examine the District's cost approach system for compliance with the Uniform Standard on Professional Appraisal Practice, IAAO, and Tax Code. Where deviations are noted, discuss and make recommendations for improvement;
4. Examine the District's income approach system for compliance with the Uniform Standards on Professional Appraisal Practice, IAAO Standard on Appraisal, and Tax Code. Where deviations are noted, discuss and make recommendations for improvement;
5. Examine the District's sales comparison system for compliance with the Uniform Standards on Professional Appraisal Practice, IAAO, and Tax Code. Where deviations are noted, discuss and make recommendations for improvement;
6. Examine the District's agricultural use appraisal system and procedure's for granting and verifying qualified lands for compliance with the Tax Code, Comptrollers Agricultural Manual, and Wildlife Management Guidelines. Where deviations are noted, discuss and make recommendations for improvement;
7. Examine the District's timber appraisal system and procedures for granting and verifying qualified lands for compliance with the Tax Code and the Comptroller's Timber Manual. Where deviations are noted, discuss and make recommendations for improvement;
8. Examine the District's personal property appraisal system and procedures for discovery and verification of personal property for compliance with the Tax Code, IAAO Standard on Personal Property, and Uniform Standards of Professional Appraisal Practice. Where deviations are noted, discuss and make recommendations for improvement;
9. Assess the District's compliance with Uniform Standard of Appraisal Practice and standards promulgated by the IAAO. Where deviations are noted, discuss and make recommendations for improvement;
10. Evaluate the District's consistency in appraisal practices by reviewing ratios for uniformity and equality among the following categories of property: single family residential real property; multi-family residential real property; vacant lots and tracts; real property acreage; farm and ranch improvements; commercial real property; industrial real property; oil, gas, and other mineral property; non-business vehicle; utility real and personal property; commercial business personal property; industrial business personal property; non-business tangible personal property; intangible personal property; and residential real property inventory;
11. Examine the District's procedures for using sales in the appraisal process and confirm that procedures are written and updated. Determine whether these procedures and the corresponding computer system used to maintain that data is adequate and in compliance with generally accepted standards. Where system or procedural weaknesses are noted, discuss and make recommendations for improvement; and
12. By examining ratio studies conducted by the District and methods, procedures and output measures produced determine what output measures are produced and how they are used in the process to ensure compliance with Uniform Standards on Appraisal Practice and IAAO Standards. Where system or procedural weaknesses are noted, discuss and make recommendations for improvement.
Banquette School District Summary Worksheet
Robstown School District Summary Worksheet
Flour Bluff School District Summary Worksheet
Banquette School District Confidence Interval Detail
Robstown School District Confidence Interval Detail
Flour Bluff School District Confidence Interval Detail