Can Texas voters force a county appraisal district to reappraise property only every three years instead of yearly?

TX AG Opinion GA-0740: Can voters force a county appraisal district onto a three-year appraisal cycle?

Plain-English summary

A petition in Webb County sought an election to limit how often the Webb County Appraisal District reappraises property, moving from annually to once every three years. The Webb County Attorney, Anna Laura Cavazos Ramirez, asked the Attorney General several questions about whether that could be done and whether a three-year cycle was even legal.

On the election question, the answer was no. Under chapter 6 of the Tax Code, the appraisal district is a political subdivision governed by its own board of directors, and the authority to develop and approve the written plan for periodic reappraisal sits solely with that board. The right to call an election exists only where a statute or the constitution expressly authorizes one. Chapter 6 authorizes a voter-initiated election only for a narrow consolidation purpose, and nothing in the constitution or any statute authorizes an election to dictate a particular appraisal schedule. So neither the appraisal district nor the participating taxing units may put the schedule to a vote.

On the legality of a three-year cycle, the opinion found no provision of the Tax Code prohibiting appraisals less often than annually. Section 23.01 sets January 1 as the uniform valuation date but does not mandate yearly appraisals. Section 23.23's cap on annual homestead value increases does not require yearly appraisals either. And section 25.18 sets the minimum frequency, requiring reappraisal at least once every three years, which is consistent with a less-than-annual cycle. So sections 23.01, 23.23, and 25.18 do not bar a district from appraising every third year.

On the last question, how a three-year cycle would affect the Comptroller's annual study of school-district property values, the opinion declined to answer. That question mixed unresolved issues of fact and law and was further complicated by House Bill 8, recently enacted, which significantly changed the Comptroller's study (moving toward a study at least once every two years and adding review and scoring requirements). Any assessment of the impact would have rested on speculation.

Currency note

This opinion was issued in 2009. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

The Tax Code appraisal provisions and the Comptroller property-value-study provisions (including the House Bill 8 changes referenced here) have continued to evolve since 2009. Confirm current law before relying on anything below.

Who this opinion affected (as of 2009)

Appraisal districts and their boards of directors: The opinion described the reappraisal plan as the board's responsibility, not a matter to be set by voters, and confirmed that a cycle as infrequent as once every three years was statutorily permissible.

Participating taxing units and petitioners: The opinion explained that there was no statutory or constitutional authority to call an election forcing a particular appraisal schedule, so a petition could not compel one.

Property owners: The opinion described the legal floor (reappraisal at least once every three years) without endorsing any particular cycle as advisable.

Common questions

Can residents petition for an election to set the appraisal schedule?
No, according to the opinion. The right to call an election must be expressly authorized by statute or the constitution, and none authorizes an election to require a particular appraisal schedule. The reappraisal plan is the appraisal district board's responsibility.

Is it legal to reappraise property only every three years?
Yes. The opinion concluded that sections 23.01, 23.23, and 25.18 do not require annual appraisals, and section 25.18 sets the minimum at reappraisal at least once every three years.

Does a less-frequent cycle violate the homestead cap rules?
No. The opinion explained that section 23.23's cap on annual increases in a homestead's appraised value does not require annual appraisals.

Did the Attorney General say a three-year cycle is a good idea?
No. The opinion cautioned that it opined only on the legal issues, not on the advisability of adopting any particular appraisal cycle.

Background and statutory framework

Chapter 6 of the Tax Code establishes an appraisal district in each county as a political subdivision governed by its own board, responsible for appraising property for the taxing units, and vests the periodic-reappraisal plan solely in the board (Tex. Tax Code Ann. §§ 6.01(a), (b), (c), 6.03(a), 6.05(i) (Vernon 2008)). The right to call an election must be expressly authorized (Countz v. Mitchell, 38 S.W.2d 770, 774 (Tex. 1931); Smith v. Morton Indep. Sch. Dist., 85 S.W.2d 853, 857 (Tex. Civ. App.-Amarillo 1935, writ dism'd)), and chapter 6 authorizes a voter-initiated election only for consolidating certain functions (id. § 6.26 (Vernon 2008)).

On frequency, section 23.01 sets the January 1 valuation date without mandating annual appraisals, section 23.23 caps annual homestead increases without requiring annual appraisals, and section 25.18 requires reappraisal at least once every three years (id. §§ 23.01(a), 23.23(a), 25.18(b) (Vernon 2008); Panther Creek Ventures, Ltd. v. Collin Cent. Appraisal Dist., 234 S.W.3d 809, 812-13 (Tex. App.-Dallas 2007, pet. denied)). The opinion declined the Comptroller-study question as a mixed fact-and-law issue complicated by House Bill 8, which amended the study provisions (Act of May 21, 2009, 81st Leg., R.S., ch. 288, §§ 2, 7, 2009 Tex. Sess. Law Serv. 791; amendments to Tex. Gov't Code Ann. § 403.302(a-1), (o), and Tex. Tax Code Ann. § 5.102(a)).

Citations

Statutes:

• Tex. Tax Code Ann. §§ 6.01(a), (b), (c), 6.03(a), 6.05(i), 6.26, 23.01(a), 23.23(a), 25.18(b) (Vernon 2008); 5.102(a)
• Act of May 21, 2009, 81st Leg., R.S., ch. 288, §§ 2, 7, 2009 Tex. Sess. Law Serv. 791; Tex. Gov't Code Ann. § 403.302(a-1), (o)

Cases:

• Countz v. Mitchell, 38 S.W.2d 770 (Tex. 1931)
• Smith v. Morton Indep. Sch. Dist., 85 S.W.2d 853 (Tex. Civ. App.-Amarillo 1935, writ dism'd)
• Panther Creek Ventures, Ltd. v. Collin Cent. Appraisal Dist., 234 S.W.3d 809 (Tex. App.-Dallas 2007, pet. denied)

Source

• Landing page: https://www.texasattorneygeneral.gov/opinions/greg-abbott/ga-0740
• Original PDF: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/2009/ga0740.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain — the linked PDF is authoritative.

ATTORNEY GENERAL OF TEXAS

GREG ABBOTT

October 13, 2009

The Honorable Anna Laura Cavazos Ramirez
Webb County Attorney
1110 Washington Street, Suite 301
Laredo, Texas 78040

Opinion No. GA-0740

Re: Authority to limit the frequency of property appraisals by an appraisal district to once every three years (RQ-0792-GA)

Dear Ms. Ramirez:

You ask several questions arising out of a petition to initiate an election concerning a proposed limitation on the frequency of tax appraisals by the Webb County Appraisal District ("WCAD") to once every three years instead of annually.[1]

You first ask whether a proposal to limit the frequency of district appraisals may be submitted to the voters of either the appraisal district or of the participating taxing units based on an initiative or referendum petition. Request Letter at 2, 4. Chapter 6 of the Tax Code establishes an appraisal district in each county and provides that "[t]he district is responsible" for appraising property in the district for each taxing unit. TEX. TAX CODE ANN. § 6.01(a), (b) (Vernon 2008). An appraisal district is a political subdivision, distinct from the participating taxing units and is governed by its own board of directors. Id. §§ 6.01(c), .03(a). Chapter 6 vests the authority and responsibility to develop and approve "a written plan for the periodic reappraisal of all property within the boundaries of the district" solely in the appraisal district board of directors. Id. § 6.05(i).

The right to call an election exists only if expressly authorized by statute or the constitution. Countz v. Mitchell, 38 S.W.2d 770, 774 (Tex. 1931); Smith v. Morton Indep. Sch. Dist., 85 S.W.2d 853, 857 (Tex. Civ. App.-Amarillo 1935, writ dism'd). Chapter 6 of the Tax Code does not authorize a voter-initiated election for any purpose other than for the narrow purpose of consolidating certain functions. TEX. TAX CODE ANN. § 6.26 (Vernon 2008). Moreover, neither the constitution nor any statute authorizes an election initiated by petition to require a particular appraisal schedule. Thus, under chapter 6, the plan for periodic appraisal is a matter to be determined by the appraisal district board of directors, and neither the appraisal district nor its participating taxing units are required or authorized to call an election initiated by a petition to require a particular appraisal schedule.[2]

Next, you ask whether Tax Code sections 23.01, 23.23, and 25.18 allow a district to reappraise property every third year rather than annually. Request Letter at 2, 4-8. We find no provision in the Tax Code that expressly prohibits appraisals from being conducted less frequently than annually. Tax Code section 23.01 establishes "January 1" as a general uniform date for a district appraising the market value of property to do so, but it does not mandate annual appraisals, nor prohibit less frequent appraisal. TEX. TAX CODE ANN. § 23.01(a) (Vernon 2008). Section 23.23's cap on annual increases in the appraised value of a residential homestead based on the last appraisal does not require annual appraisals. Id. § 23.23(a). Moreover, Tax Code section 25.18 establishes the minimum required frequency of appraisals, requiring reappraisals "at least once every three years," and thus is consistent with appraisals conducted less frequently than annually. Id. § 25.18(b); see also Panther Creek Ventures, Ltd. v. Collin Cent. Appraisal Dist., 234 S.W.3d 809, 812-13 (Tex. App.-Dallas 2007, pet. denied) (noting that reappraisal is statutorily required "only once every three years").[3] Accordingly, we conclude that Tax Code sections 23.01, 23.23, and 25.18 do not prohibit an appraisal district from conducting appraisals less frequently than annually.[4]

Finally, you ask how a district's practice of conducting an appraisal every third year might affect the annual study of the Texas Comptroller of Public Accounts (the "Comptroller") concerning school district property values. Request Letter at 9-10. Your question raises numerous issues of fact and law that cannot be resolved in an attorney general opinion. See Tex. Att'y Gen. Op. No. GA-0648 (2008) at 7 (mixed question of fact and law cannot be investigated and resolved in an attorney general opinion). Moreover, your question is further complicated by the recent enactment of House Bill 8, which significantly amends the provisions concerning the Comptroller's study. See Act of May 21, 2009, 81st Leg., R.S., ch. 288, §§ 2, 7, 2009 Tex. Sess. Law Serv. 791, 791-804 (Vernon) ["House Bill 8"]. House Bill 8 now requires the Comptroller to conduct a taxable property value study in a district at least once every two years, although for some districts the study may still be conducted annually. See House Bill 8, § 2 (to be codified as an amendment to TEX. GOV'T CODE ANN. § 403.302(a-1)). Also, the Comptroller must conduct a review in each appraisal district at least every two years "to determine compliance with generally accepted standards, procedures, and methodology." Id. § 7 (to be codified as an amendment to TEX. TAX CODE ANN. § 5.102(a)). House Bill 8 establishes the "Comptroller's Property Value Study Committee" and requires the Comptroller to adopt rules in consultation with the committee to govern the conduct of the property value study and to conduct and score the appraisal district review. Id. § 2 (to be codified as an amendment to TEX. GOV'T CODE ANN. § 403.302(o)); § 7 (to be codified as an amendment to TEX. TAX CODE ANN. § 5.102(a)). In light of the changes yet to be fully implemented under House Bill 8, as well as the myriad fact questions inherent in your question, any assessment of the possible impact of a particular appraisal schedule would necessarily rest on pure speculation. Accordingly, we do not answer your final question. See Tex. Att'y Gen. Op. No. GA-0620 (2008) at 4 (declining to "speculate about a worst-case scenario" due to "the various permutations involved" in the question).

SUMMARY

An appraisal district and its participating taxing units are not authorized to submit an issue to the voters for an election to require a particular appraisal schedule, whether initiated by petition or otherwise. Sections 23.01, 23.23, and 25.18 of the Tax Code do not prohibit conducting appraisals every third year rather than annually.

Very truly yours,

ANDREW WEBER
First Assistant Attorney General

JONATHAN K. FRELS
Deputy Attorney General for Legal Counsel

NANCY S. FULLER
Chair, Opinion Committee

William A. Hill
Assistant Attorney General, Opinion Committee

[Footnote 1: See Request Letter at 1-2 (available at http://www.texasattorneygeneral.gov).]

[Footnote 2: Cf. City of Hitchcock v. Longmire, 572 S.W.2d 122, 126-27 (Tex. Civ. App.-Houston [1st Dist.] 1978, writ ref'd n.r.e.) (stating that "[t]here can be no right or power existing in the people of a [home rule] city to adopt an ordinance through the initiative process if the power to adopt it is not lodged in the city council in the first instance"). We do not address the general initiative or referendum authority, if any, of the various taxing units.]

[Footnote 3: See also Tex. Att'y Gen. Op. Nos. GA-0317 (2005) at 4 (observing that, under Tax Code section 25.18's requirement of a plan to appraise property at least once every three years, districts may use different appraisal cycles); accord GA-0283 (2004) at 2-3.]

[Footnote 4: We caution that we opine only about the legal issues presented, not about the advisability of adopting any particular appraisal cycle.]