Appraisal Challenge Resolution

[Ellen Troxclair]

On Thursday, the City Council will consider expressing its support for continuing legal action in order to challenge certain property tax appraisals. Due to a prior commitment, I will be unable to attend this special-called council meeting, but wanted to voice my thoughts on this important topic.

When the Council originally discussed a potential challenge of commercial property tax appraisals, the clear consensus among Council was that if some commercial properties were not being appraised equitably, then any additional tax revenue resulting from the challenge could be applied to the budget in a manner that allowed the city to lower the tax rate for all taxpayers. Thus, it was an issue of fairness as well affordability.

In other words, this action was not intended to be used as a source of additional revenue, but rather a tool that would result in a lower tax rate, meaning that the vast majority of Austinites would pay less in taxes. The Council may recall the several staff presentations and discussions specifically about the lower tax rate we would likely have been able to adopt had the City’s lawsuit been successful. In large part because of this reason, I co-sponsored the original resolution.

With that in mind, I would like to offer the following amendment for consideration, in case another Council Member wishes to propose it. I believe the inclusion of this amendment would reiterate the original intent of the challenge and provide clarity to the community about the city's efforts towards this end.

"THEREFORE BE IT RESOLVED that the Austin City Council will use all additional tax revenue generated as a result of the appraisal challenge as a revenue neutral tool to lower the property tax rate for all taxpayers."

Staff has confirmed that they would be able to determine the amount of additional revenue resulting from a successful challenge.

The adoption of the resolution would make this important part of the Council's intent clear to the public. Conversely, adoption without this amendment would be a signal that the original intent of the Council on this matter may have changed, and that Council may intend to use any additional revenue to increase the budget. If this is the case, there would be no resulting relief to homeowners or other taxpayers who have supported this action based on that expectation. I remain consistently dedicated to addressing affordability by reducing the tax burden, I hope that the Council will include this amendment.

Additionally, it seems that our conversations over the past several months have shifted away from ensuring an equitable system in Austin, with an eye towards affordability for all. The conversation about working with the Legislature towards that common goal has devolved into blaming the Legislature for real or perceived shortcomings of our existing property tax system. With intent expressed from both state officials and real estate professionals about making improvements to the current process I hope that we can continue to work together in a collaborative and productive manner to the benefit of all Austinites.

Thank you,
Ellen Troxclair