Navarro Central Appraisal District
Appraisal Standards Review Follow-Up Report
November 21, 2008
James G. Price, D.D.S., Board Chairman
Ms. Karen Morris, Chief Appraiser
Navarro Central Appraisal District
P.O. Box 3118
Corsicana, Texas 75110-3118
Dear Chairman Price and Chief Appraiser Morris:
This letter constitutes the Comptroller’s follow-up review of the Appraisal Standards Review (ASR) of Navarro Central Appraisal District (Navarro CAD) originally released in August 2007. We commend the cooperation of Navarro CAD’s board, chief appraiser and staff in conducting this follow-up review.
CADs play an integral part in setting property values because they have the statutory responsibility for determining local property values, which in turn affect funding to public schools.
The ASR made four mandatory recommendations and 11 optional recommendations to help Navarro CAD achieve accurate local value in the annual Property Value Study and improve operations. The Comptroller acknowledges the work Navarro CAD has performed over the last year. The CAD has completed mandatory recommendation 3 and eight of the 11 optional recommendations. These completed recommendations have assisted the CAD in improving its staffing, management and appraisal practices.
We also reviewed the implementation of the remaining mandatory recommendations. While work is in progress, Navarro CAD has not fully implemented recommendations 1, 2 and 4. Enclosed is more detail on what the CAD still needs to do.
This letter is available on our Window on State Government Web site at www.window.state.tx.us/taxinfo/proptax/cadreports/asr/navarro01/.
I hope this information is helpful. Please let us know if we can be of any further assistance.
Sincerely,
Susan Combs
Enclosure
cc: Superintendent and Board of Trustees, Blooming Grove Independent School District; Corsicana
Independent School District; Dawson Independent School District; Frost Independent School District;
Kerens Independent School District; Mildred Independent School District; and
Rice Independent School District
Navarro CAD Board of Directors
What Remains to Be Done
The Comptroller’s office will continue to monitor Navarro CAD’s progress toward meeting the state’s legal requirements. The following outlines steps Navarro CAD still needs to take.
RECOMMENDATION 1
Develop and adopt a complete reappraisal plan in compliance with Property Tax Code Section 25.18 and industry standards.
Navarro CAD developed the 12-page Navarro Central Appraisal District 2007-2008 Reappraisal Plan that was adopted by the board of directors on Oct. 18, 2006. The plan identifies the taxing entities served; the 10 steps for each reappraisal; staff members and a brief description of duties; a planning and organization calendar; mass appraisal system development; data collection; production of values; and a map of the county divided by ISD.
While the adopted plan is a positive step toward meeting this recommendation, it does not clearly identify or define market areas or neighborhoods within the CAD’s jurisdiction or detail who is responsible for which properties in the reappraisal.
To complete this recommendation, the CAD must clearly define and identify market areas or neighborhoods within its jurisdiction and specifically identify when, how and by whom they will be reappraised during the year. The CAD should submit the revised reappraisal plan to PTAD by the end of January 2009.
RECOMMENDATION 2:
Improve methods of using ratio studies to eliminate unequal levels of appraisal to help ensure that the CAD appraises all categories of property at market value.
Navarro CAD provided a proposal from an outside vendor dated Sept. 22, 2006. The proposal appears to be for the purchase of a computer system that includes CAMA software. The chief appraiser stated that she implemented new appraisal software in November 2006, but no executed contract or verification of bid acceptance was provided.
The chief appraiser subsequently forwarded a copy of appraisal procedures that discuss appraisal responsibilities, highest and best use analysis, sales, market analysis, data collection/validation, sources of data, valuation analysis, residential schedules and statistical analysis. While the brief section on statistical analysis discusses ratio studies, it does not discuss how the CAD uses the ratio study results.
To complete this recommendation the CAD should provide a copy of the fully executed and signed contract with the software vendor for the CAMA system and provide a copy of detailed procedures on the use of ratio study results to PTAD by the end of January 2009.
RECOMMENDATION 4:
Establish written procedures aligned with industry-accepted standards for gathering and analyzing sales data.
In response to this recommendation, Navarro CAD provided Written Procedures for Gathering and Analyzing Land Sales Data. The document is three-quarters of a page in length and provides a broad discussion defining land valuation and its importance in the appraisal process.
Navarro CAD states in this document that its “current plan allows for periodic field review and appraisal of land every four to five years, with the exception of the Richland Chambers Lake Area, which is a ‘hot spot’ that should be reviewed each year.” According to Property Tax Code Section 25.18, all property is to be reappraised at least once every three years.
Though the chief appraiser stated that the CAD was able to join the Navarro Board of Realtors, the document provided does not discuss the process through which sales are collected or gathered, nor does it discuss the analysis used on the sales. The only analysis discussed is that sales older than 12 months are not used.
To complete this recommendation, the CAD should provide written procedures that describe the process of collecting and gathering sales information and the analysis used in evaluating sales data to PTAD by the end of January 2009.