Without sale price disclosure, estimating market value of real estate is mostly guesswork. In middle-class neighborhoods, where the houses are similar and many sell each year, appraisal boards can usually get the information they need to make this guesswork pretty accurate. In wealthy neighborhoods, where the houses are unique and sales less frequent, it's more difficult to estimate market value. When mansions are listed, it's often discovered that the asking price is much higher than the appraised value on the tax rolls. And commercial properties often sell with complex contracts, confidentiality agreements, and other means that prevent appraisers from doing their jobs.
Roddy Stinson doesn't predict how Republicans will kill a sale price disclosure bill, only that they will. In my opinion, they'll do it by distorting appraisal reform into their preferred goal — tax cutting.
Gov Perry set up a commission chaired by Tom Pauken for the supposed purpose of reforming the appraisal process in Texas. You might think that sale price disclosure would be the number one item in their reform recommendations. No brainer, even. But no. Mr Pauken's road show is traveling Texas whipping voters into a frenzy to cap local government revenues.
Expect Perry and Craddick to accept Pauken's recommendations, push the local government revenue caps through the legislature, and claim to be reforming the appraisal process. Sale price disclosure will end up on the floor.
The result will be handicapped local government and a shift of more of the tax burden from property tax to sales tax, from the wealthy to the middle and lower classes.
And Governor Perry will thank Mr Pauken for his service, his service to those "kiss-the-rich, kick-the-middle-class Republican henchmen" that Roddy Stinson talks about.
No comments:
Post a Comment