download report

Transcript CAD REFORM -

Richard Dayoub, President and CEO
Greater El Paso Chamber of Commerce
The Issue
• El Paso’s process for assessing property taxes and its
valuation system present obstacles to the city’s current
stability and future development
• Recognizing its own lack of authority, the GEPCC seeks
to begin the conversation about steps to improve the
CAD’s function
• Possible remedies include local and state action
CAD Inefficiencies
• Reform needed on multiple fronts
• CAD Board issues: Appointment of elected officials, lack
of continuity and expertise, insufficient training, lack of
accountability, potential conflicts of interest
• ARB issues: Appointees lack expertise, lack of continuity,
no merit-based standards for appointment, cumbersome
appeals process
Valuation Problems
• Lack of transparency permeates valuation process
• Valuation methodology offers no incentive for property
owners to make improvements
• Adversarial system favors only attorneys and
contingency-fee appraisers
• Statutory maximum of 10 percent should not be a blank
check for valuation increases
• Taxing entities sometimes rely on proposed increases to
their detriment
Realistic Next Steps
• Have taxing entities enforce accountability through
attendance and training requirements
Have taxing entities establish minimum standards for all
Let elected officials focus on obligations to constituents,
not adding to their responsibilities
Follow letter of Texas law in appointing board members
Taxing entities should establish notice threshold for
valuation changes (i.e. aggregate change of at least 1/10
of one percent of budget)
Final Thoughts
• Have El Paso take the lead on reforming inefficient
• Work with local delegation to address other needs that
may require legislative changes
• Without a “silver bullet” solution, reform must be
cooperative and multi-faceted
• Questions?