1. Changing Your Property Tax System: A Legislative Approach To Fairness
APTC 21st Annual Property Tax Seminar
Changing Your Property Tax System: A Legislative Approach To Fairness
Jim Popp
Popp Hutcheson PLLC
Austin, texas
American Property Tax Counsel
21st Annual Property Tax Seminar

2. “Changing Strategies for Changing Times”
APTC 21st Annual Property Tax Seminar
“Changing Strategies for Changing Times”
What does“ Changing Times” Mean as It Relates to Property Tax Legislation
What does “Changing Strategies” Mean as it Relates to Property Tax Legislation?

3. A Real World Examples of a Legislative Program
APTC 21st Annual Property Tax Seminar
A Real World Examples of a Legislative Program
2011 Drafted and Passed 37 Changes to the Texas Property Tax Code
2013 Drafted and Passed 28 Changes to the Texas Property Tax Code
Texas Equity Remedy: Opposition Desire to Repeal

4. Changing Your Property Tax System: A Legislative Approach To Fairness
APTC 21st Annual Property Tax Seminar
Changing Your Property Tax System: A Legislative Approach To Fairness
A Comment on “Fairness” in the Property Tax System

5. APTC 21st Annual Property Tax Seminar
The Texas Remedy
42.26 (a)(3): “The district court shall grant relief on the ground that a property is appraised unequally if the appraised value of the property exceeds the median appraised value of a reasonable number of comparable properties, appropriately adjusted.”

6. APTC 21st Annual Property Tax Seminar
Newspaper Headlines
Property tax bill with far-reaching consequences had hidden beginning
Tax law leads to towering savings for big building owner
Bills aim stop school tax give backs caused by lower property values
City blames state of Texas for inequities in commercial property taxing
Texas is losing out on millions of dollars thanks to its defective property tax system
Property lawsuits skyrocket in Bexar County commercial owners exploit tax system
Property tax loophole could drive down values, appraiser says
Large companies turn to courts for tax relief
Transparency would help restore fairness to the state tax system
Does Texas hamstring appraisers?

7. Same Words Different Meaning
APTC 21st Annual Property Tax Seminar
Same Words Different Meaning
Common provision: Taxation shall be equal and uniform.
What does this mean in your state?
Meaning depends on State Legislature response to the public, political and business input in your state.

8. Taxation Shall be Equal & Uniform???
APTC 21st Annual Property Tax Seminar
Taxation Shall be Equal & Uniform???
WHAT DOES IT MEAN IN YOUR STATE??
May only challenge if exceed market value even if valued differently.
May only be challenged based on a sales ratio study of a sample of properties compared to the subject.
May only challenged based on a sales ratio study of a category of properties compared to the subject.
May only be challenged based on a comparison of tax comps to the subject.

9. How to Change the System
APTC 21st Annual Property Tax Seminar
How to Change the System
Creation of the Legislature in each State.
All property tax systems are not created equally.
Public, political and business attitude toward property taxes.

10. Understanding the Dynamics of Your Property Tax System
APTC 21st Annual Property Tax Seminar
Understanding the Dynamics of Your Property Tax System
Major trend that tax systems are always in transition
Understand the causes of transition
Understand how to address transition

11. Starting the Process Development of a legislative program
APTC 21st Annual Property Tax Seminar
Starting the Process
Development of a legislative program
What does development of a legislative agenda mean?
Why develop a legislative agenda?

12. Understand How Change in your System Comes About
APTC 21st Annual Property Tax Seminar
Understand How Change in your System Comes About
Review what works and does not in other states.
Talk to people who have been through the process.
Identify a working list of changes.
Prepare drafts of legislation.
Prepare position papers and talking points.
Review ideas with as many people as possible.

13. Forces at Work Influencing the System
APTC 21st Annual Property Tax Seminar
Forces at Work Influencing the System
Homeowners
Taxpayers
Tax Professionals
Over 65
Politicians
Newspapers
Unions
Lobbyists representing various interests
Assessor Groups
Trade Associations

14. Develop the Legislation Goal or Goals
APTC 21st Annual Property Tax Seminar
Develop the Legislation Goal or Goals
Passing Legislation vs. Killing Legislation
Process of Drafting Legislation
Process of Drafting Talking Points
Process of Drafting education Pieces

15. Defeating Bad Legislation
APTC 21st Annual Property Tax Seminar
Defeating Bad Legislation
Sometimes the goal is to prevent bad tax legislation from becoming law
Legislative process is the same as above, but the tactics will differ
Identify allies with whom the legislature will sympathize
Focus on identifying why the proposed legislation is problematic
Remember, bad legislation can be attacked in the courts later if need be (let a bad law pass so courts can strike it down later)

16. Draft Alternative Positions
APTC 21st Annual Property Tax Seminar
Draft Alternative Positions
What is the purpose of alternative positions.
What are the considerations in drafting.

17. Analyze Your Personal Involvement in the Process
APTC 21st Annual Property Tax Seminar
Analyze Your Personal Involvement in the Process
Why do you want to become involved?
What is your goal both short term and long term?
How and why to develop an identity
How much time can you devote to the process?
How much money can you devote to the process?
Are you willing to be patient?
Are you willing to put your big boy pants on and take a beating?

18. Develop Allies Among Legislative Members
APTC 21st Annual Property Tax Seminar
Develop Allies Among Legislative Members
Review property tax legislation filed during the past several sessions and review voting records.
Identify Members of the legislature who will be likely supporters.
Identify or develop a strong leader committed to property tax issues.
Campaign contributions
Try to make the opposition members an ally or at least neutral
Work with and assist member’s staff

19. APTC 21st Annual Property Tax Seminar
Retain a Lobbyist:
Most significant legislation is passed with the assistance of lobbyists.
Lobbyists are professionals in the process of effecting legislation and are valuable investments.
Retain the best lobbyist you can afford.
There are many choices available, so care in the selection is necessary.
Consider whether to use a lobbyist affiliated with specific organization

20. Selection Process of a Lobbyist:
APTC 21st Annual Property Tax Seminar
Selection Process of a Lobbyist:
Review newspaper reports about the lobbyists.
Ask other lobbyists
Review the client list of the lobbyist.
Consider benefits of firm with several lobbyist versus solo lobbyist.
Review campaign contributions of the lobbyist.
Review the lobbyist’s knowledge of key legislative members and their staff.
Review the lobbyist’s position with leadership.

21. Property Tax Professional Trade Organization
APTC 21st Annual Property Tax Seminar
Property Tax Professional Trade Organization
Legislatures are always interested in the broad picture with regard to lobbying.
Trade organization often is viewed as a better source of information than an individual.
Trade organization may have existing database of information to support your position, which information will be needed to educate legislators
If there is not one form one

22. Trade Association as Allies
APTC 21st Annual Property Tax Seminar
Trade Association as Allies
Why a trade organization?
Purpose is to influence legislation that affects their members.
Property taxes effect the members of most trade organizations.
Trade groups have the financial wherewithal to carry or defeat legislation
Trade group may be a good ally because they support a popular or big industry

23. Political Action Committee
APTC 21st Annual Property Tax Seminar
Political Action Committee
What is a PAC?
Process of forming a PAC
Purpose of a PAC

24. Taxpayer Involvement in the Legislative Process
APTC 21st Annual Property Tax Seminar
Taxpayer Involvement in the Legislative Process
Legislators do take interest in the individual taxpayers’ opinions.
It is crucial to have contact and input from these individual taxpayers.

25. Working With Your Opposition
APTC 21st Annual Property Tax Seminar
Working With Your Opposition
Expect property tax legislation to have opposition.
Identify the groups that may oppose the legislation.
Plan out potential compromise positions which may mean scaling back your initial proposal significantly (baby steps).
Trading one thing for another
Prepare responses to potential opposition.
Address opposition points with the legislature.
Always keep taking to the other side

26. Alternatives to a Legislative Program
APTC 21st Annual Property Tax Seminar
Alternatives to a Legislative Program
Let the Status Quo Continue
Throw Up your Hands and Complain
Grin and Bear It
Let Others Control Your Property Tax Life
Blame the Party in Power for Not Doing Anything
Fatalistically Say You Can’t Change Anything
Wait Until Next Year to Do Something
Kick the dog

27. Putting It All Together
APTC 21st Annual Property Tax Seminar
Putting It All Together
Out work
Money
Information
Education
Passion
Lots and Lots of Baby Steps