(Note: The following article discusses the increase in school district values from the Comptroller's final 1998 property value study to the preliminary 1999 study, based on information reported by Texas school districts. The Comptroller's study determines the taxable wealth of each school district for state aid to local districts. These values may be different from local tax roll values.)Local values
Texas school districts' preliminary property values totaled more than $801 billion in 1999, an increase of about 7 percent, or almost $53 billion from 1998. Independent school district (ISD) property values are up for the seventh year in a row, based on numbers from the Comptroller's property value study (PVS). School property values have continued to rise since the 1992 study findings.
State Comptroller Carole Keeton Rylander certified the preliminary determination of school property values -- based on the appraisal date of Jan. 1, 1999 -- to Education Commissioner Jim Nelson on Jan. 31, 2000.
The Government Code requires the Texas Education Agency to use the Comptroller's annual estimates of individual school district taxable wealth to determine state aid payments. Copies of the Comptroller's findings may be obtained by ordering the agency's 1999 Preliminary Report of School and Appraisal Districts' Property Value Study. The findings will soon be available on the Comptroller's Web site at www.window.state.tx.us. The Comptroller will automatically send a copy of the preliminary report to each county appraisal district, school district, county tax office and certain taxpayers. For questions about the preliminary PVS results, e-mail the Property Tax Division at ptd.cpa@cpa.state.tx.us or call 1-800-252-9121, ext. 5-9838. In Austin, call (512) 305-9999.
School districts, appraisal districts and some taxpayers (with significant property in the study) had until March 13 to appeal the study's preliminary findings. Final taxable values, which are certified by July 1, 2000, may be less than those listed in the preliminary study because of appeals and corrections filed with the Comptroller's Property Tax Division (PTD).
The Comptroller certified the school district's local tax roll values in 751 school districts. (While there are 10,035 school districts, the certification is for 1,053 districts because some school districts' values are divided among more than one appraisal district.) These districts reported local property values that fell within the Comptroller's 5-percent margin of error. They accounted for almost $638 billion in taxable value, or about 80 percent of the total taxable value in Texas.Largest school districtsIn the remaining 302 districts, where local tax roll values did not meet the agency's criteria (5-percent margin of error), the Comptroller certified the determination of those districts' values at almost $164 billion.
In 1999, taxable values increased in about 71 percent -- or 746 -- of the school districts, with an average increase in value of more than 9 percent. In comparison, about 74 percent -- or 782 --of all districts had an average increase in value of 7.5 percent in tax year 1998.
About 28 percent of the school districts -- or 298 -- had property values increase more than 10 percent from last year. Of these 298 districts, 54 districts saw property values increase more than 20 percent. The largest percentage increase in value was almost 53 percent for Frisco ISD in Collin County. Frisco ISD's tax base grew from $1.4 billion to $2.2 billion. The other percentage increase exceeding 50 percent from 1998 to 1999 was in Tenaha ISD in Shelby County at 52 percent.
Values dropped in 306 districts by an average of about 11 percent from 1998 to 1999. In the preceding study, values dropped by an average of 5 percent in 271 school districts.
About 11 percent of these school districts -- 115 -- saw property values decrease more than 10 percent from last year. Forty-six of these 115 districts experienced more than a 20-percent loss in property value.
Of the state's 50 largest school districts in taxable wealth, 44 districts saw increases in taxable values. Houston ISD, the state's largest district with a taxable value of more than $55 billion, had property values increase almost 9 percent from 1998. Dallas ISD, the second largest district, totaled almost $48 billion in property value, which was almost 10 percent more than last year's tax base.ExemptionsLewisville ISD in Denton County experienced the greatest increase in property value of the 50 largest school districts, gaining 18.5 percent, or about $1.5 billion more value than in 1998. Other increases in the largest school districts included San Antonio (18 percent), Grapevine-Colleyville (17.5 percent), Coppell (17 percent) and North East (17 percent) ISDs.
The 10 largest school districts in taxable wealth all increased in taxable value in 1999. Accounting for about 29 percent of all the state's property value, these 10 districts in order of value are Houston, Dallas, Austin, Plano, Richardson, Arlington, Fort Worth, Cypress-Fairbanks, North East and Northside (in Bexar County) ISDs.
Only five of the 50 largest school districts in taxable wealth decreased in property value. Glen Rose ISD in Somervell County, ranking 19th on the top 50 list, declined 5 percent, a loss of $347 million in value. Other ISDs with decreases in taxable wealth were La Porte, Midland, Deer Park and Ector County ISDs.
According to the preliminary study results, school districts' exemptions and abatements increased about 8 percent from the final 1998 to the 1999 preliminary study. The total 1999 amount of $106.7 billion was $7.5 billion more than in 1998.Property categoriesGovernment Code Section 403.302 specifies the exemptions and productivity value loss for special appraisals that the Comptroller deducts from market value to determine the taxable value of property in school districts.
The preliminary 1999 study, before exemptions, revealed an increase of 10 percent in the value of single-family residences, following an increase of 7 percent in 1998. This category is the largest in appraised value, representing 44 percent of the total school district tax base. Multi-family residences values increased almost 14 percent in 1999, following an 8.5 percent increase in 1998.Changes in business properties' values varied, depending on the type. Commercial real property increased more than 14 percent, compared to an increase of 11 percent last year. Industrial real property increased less than 1 percent; the category's 1998 values increased 4 percent. Industrial personal and commercial personal properties continue to increase in value. Industrial personal increased almost 2 percent (compared to almost 4 percent in 1998) and commercial personal rose about 7 percent (compared to 4 percent in 1998).
Utilities dropped slightly from 1998 to 1999, less than one-half of 1 percent in value, after decreasing about that same percentage in 1998.
Oil, gas and minerals have seen both ups and downs in recent years. After increasing in value in 1997 by 23 percent but falling by almost 6 percent with the 1998 values, oil, gas and minerals declined by more than 29 percent in 1999 values.
Category N, intangible personal and uncertified property, included miscellaneous properties listed on the local tax rolls but not certified by local appraisal review boards at reporting time. With updated information during the appeals process, Comptroller staff will distribute the certified values among other property categories.
| The following tables are found on the next page: Statewide School District Taxable Values Final 1998 vs. Preliminary 1999 (In Billions)
Statewide Median Appraisal Ratios
Statewide Coefficients of Dispersion |