- On this page:
- 1998 Preliminary Property Value Study Findings
- Rylander Reports: Declining Oil and Gas Values
- Estimated School Tax Loss for 1999 Oil and Gas Property
- On Page 2:
- Statewide Median Appraisal Ratios
- Statewide Coefficients of Dispersion
- 1998 School Taxes Total $11.3 Billion
- 1998 School Rate and Taxes for Each Texas School District
Comptroller Releases 1998 Preliminary
Findings of School Property Value Study
(Note: The following article discusses the increase in school district values from the Comptroller's final 1997 property value study to the preliminary 1998 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.)
Texas school districts' preliminary property values totaled more than $752 billion in 1998, an increase of about 6 percent or almost $43.5 billion from 1997. Independent school district (ISD) property values are up for the sixth 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 January 1, 1998 -- to Education Commissioner Mike Moses on January 29, 1999. 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 1998 Preliminary Report of School and Appraisal Districts' Property Value Study. The Comptroller will automatically send a copy of the preliminary report to each county appraisal district, school district, county tax office, and certain taxpayers.
School districts, appraisal districts, and some taxpayers (with significant property in the study) have until March 10 to appeal the study's preliminary findings. Final taxable values, which are certified by July 1, 1999, may be less than those listed in the preliminary study because of appeals and corrections filed with the Comptroller's Property Tax Division (PTD).
Local values
The Comptroller certified the school district's local tax roll values in 820 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 $703 billion in taxable value, or about 93 percent of the total taxable value in Texas.In the remaining 233 districts, where local tax roll values did not meet the agency's criteria, the Comptroller certified its determination of those districts' values at almost $50 billion.
Taxable values increased in about 77 percent -- 807 -- of the school districts, with an average increase of 8.4 percent. In comparison, about 89 percent -- 923 --of all districts had an average increase of slightly more than 10 percent in tax year 1997.
About 20 percent of the school districts -- 214 -- had property values increase more than 10 percent from last year. Of these 214 districts, 41 districts saw property values increase more than 20 percent. The largest percentage increase in value was 173 percent for Saltillo ISD in Franklin County. Saltillo ISD's tax base grew from $265 thousand to more than $723 thousand. The other percentage increases exceeding 50 percent from 1997 to 1998 were in Dew ISD in Freestone County (121 percent), Manor ISD in Travis County (102 percent), Mirando City ISD in Webb County (77 percent), and Sabine Pass ISD in Jefferson County (74 percent).
Values dropped in 246 districts by an average of 5.5 percent from 1997 to 1998. In the preceding study, values dropped by an average of 3 percent in 113 school districts.
About 4 percent of the school districts -- 40 -- saw property values decrease more than 10 percent from last year. Four of these 40 districts experienced more than a 20-percent loss in property value. Districts with the greatest loss were Smyer ISD in Hockley County (25 percent), Jayton-Girard ISD in Kent County (23 percent), White Oak ISD in Gregg County (21 percent), and Leggett ISD in Polk County (20 percent).
Largest school districts
Of the state's 50 largest school districts in taxable wealth, 47 districts saw increases in taxable values. Houston ISD, the state's largest district with a taxable value of more than $50 billion, saw almost a 7-percent increase in value from 1997. Dallas ISD totaled almost $44 billion in property value, which was 5 percent more than last year's tax base.Coppell ISD in Dallas County experienced the greatest increase in property value of the 50 largest school districts, with more than an 18-percent increase (about $559 million more value than in 1997). Coppell ISD's 1998 property values totaled more than $3.6 billion. Highland Park ISD, also in Dallas County, had the second largest increase at 13.75 percent, or about $573 million, to top $4.7 billion. In Travis County, Eanes ISD narrowly missed second place by increasing 13.5 percent to a tax base of almost $3.7 billion.
The 10 largest school districts in taxable wealth all increased in taxable value in 1998. Accounting for about 28 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 ISDs.
Only three of the 50 largest school districts in taxable wealth had decreases in property value. Glen Rose ISD in Somervell County, ranking 19th on the top 50 list, had a 7-percent decline, a loss of $548 million in value. Other ISDs with a decrease in taxable wealth were Ector County ISD (3.2 percent) and El Paso ISD in El Paso County (less than 1 percent).
Exemptions
According to the preliminary study results, school districts' exemptions and abatements increased about 8 percent from the 1997 to the 1998 study. The total 1998 amount of $99 billion was about $7 billion more than in 1997.Government 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. State-mandated homestead exemptions, the taxable value loss for those homes with tax ceilings for qualified homeowners aged 65 or older, and the cap value on the appraisal of residential property account for about 90 percent of the deducted value. Statewide School District Taxable Values Final 1997 vs. Preliminary 1998 (In Billions)
Property categories
The final 1998 study, before exemptions, revealed more than a 7-percent increase in the value of single-family residences, slightly above the 1997 increase (6 percent). This category is the largest in appraised value, representing 43 percent of the total school district tax base. Multi-family residences values increased almost 9 percent, following an 8-percent increase in 1997.Changes in business properties' values varied, depending on the type. Commercial real property increased more than 11 percent, compared to an 8-percent increase last year. Industrial real property increased about 4 percent, after a 1-percent increase in 1997. Industrial personal and commercial personal properties continue to increase in value. Industrial personal increased almost 4 percent (compared to 6 percent in 1997) and commercial personal rose about 3 percent (compared to almost 7 percent in 1997).
Utilities decreased slightly from 1997 to 1998, about one-half of one percent in value, after rising about that same percentage in 1997. After increasing in value in 1997 by 23 percent, the 1998 values of oil, gas and minerals decreased by almost 6 percent. Subsequent decreases in oil and gas prices during late 1997 and through 1998 have affected not only 1998 values but also the 1999 values. (See the related article about estimated 1999 school tax levy losses.)
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.
Statewide School District Taxable Values
Final 1997 vs. Preliminary 1998 (In Billions)
Category 1997 Final Assigned 1998 Preliminary Percent Change A. Single-family residences $338.33 $363.32 7.4 % B. Multi-family residences $ 34.09 $ 37.01 8.6 % C. Vacant Lots $ 19.78 $ 20.39 3.1 % D. Rural Real (Taxable) $ 39.72 $ 42.12 6.0 % F1. Commercial Real $110.33 $122.69 11.2 % F2. Industrial Real $ 54.22 $ 56.15 3.6 % G. Oil, Gas & Minerals $ 37.09 $ 35.01 - 5.6 % J. Utilities $ 48.52 $ 48.25 - 0.6 % L1. Commercial Personal $ 70.64 $ 72.74 3.0 % L2. Industrial Personal $ 43.01 $ 44.58 3.7 % M. Other Personal $ 2.49 2.94 18.1 % N. Intangible Personal &
Uncertified *$ 1.17 $ 4.63 295.7 % O. Residential Inventory $ 1.38 $ 1.56 13.0 % Subtotals: $800.77 $851.39 6.3 % (Less Exemptions) - $ 91.85 - $ 99.00 7.8 % Taxable Value Certified $708.92 $752.39 6.1 % * Not a valid comparison because values were not certified by local appraisal review board at reporting time.
Totals may not add because numbers are rounded.
Source: Comptroller's Property Tax Division
Declining Oil and Gas Values
Dear Readers:
The decline in oil prices is having a devastating impact on some local school districts. While consumers may welcome lower prices at the gas pumps, the trickle down effect on local 1999 property values could have a serious financial impact for some Texas school districts.
For state fiscal year 2000, we estimate that total school district tax losses may be approximately $150 to $160 million. At least 30 districts may sustain losses of more than a million dollars for fiscal year 2000, ranging from a high of $8.3 million in the Iraan-Sheffield Independent School District located in Pecos County to $1.07 million in the Post Independent School District in Garza County.
The financial shortages facing some school districts as a result of the crisis in the oil and gas industry are staggering. Without emergency assistance to these areas, Texas homeowners and businesses may see their property tax rates climb even higher.
You can find our analysis of estimated school tax loss for declining oil prices on individual school districts on the our Internet website -- Window on State Government -- at Potential Oil and Gas Property Tax Levy Losses to Texas School Districts.
Sincerely,
CAROLE KEETON RYLANDER
Texas Comptroller of Public Accounts
Comptroller Estimates School Tax Loss for 1999 Oil and Gas Property Values
The Comptroller's office surveyed appraisal districts and their contract appraisal firms about the estimated 1999 appraisals of oil and gas reserves. The survey found local appraisers believed that oil properties will decline in value from January 1, 1998, to January 1, 1999, by about 40 percent. These appraisers also estimated that gas properties will decline by about 15 percent. The reason given for the declining values was the decline in oil and gas prices.
Local appraisers are working on 1999 property values based on the appraisal date of January 1, 1999. Local appraisal review boards will not certify these local appraisals until late July, 1999, after property owners have an opportunity to appeal the local values.
The Comptroller's office asked for more specific information from appraisers for school districts where oil and gas reserves comprise more than 20 percent of the school district's total taxable value as reported on the School District Report of Property Value for Tax Year 1998. The Comptroller staff translated these value losses into property tax levy losses. More specific data also was requested where 1999 estimated oil and gas tax levy loss exceeded $250,000.
The Comptroller estimated that the school district tax levy loss for state fiscal year 2000 is approximately $150 to $160 million. This rough estimate is based on the informal survey of preliminary figures from local appraisers, the 1998 school property tax rates, and 1998 local values for oil and gas properties reported by school districts. Tax levy losses will affect school districts for school year 1999-2000 and will affect the state (through the school funding formula) in fiscal year 2001.
The Comptroller found 119 school districts with an estimated tax levy loss for oil and gas properties that exceeds $250,000. The estimates are listed from highest to lowest amount of loss. The estimates may vary from the actual tax levy losses that occur after appraisal districts complete local 1999 appraisals. For the listing of all 759 school districts, see the ComptrollerŐs Internet website -- Window on State Government -- at at Potential Oil and Gas Property Tax Levy Losses to Texas School Districts.
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