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<br />- <br />RESOLUTION NO. 02- 3~ <br /> <br />A RESOLUTION REQUESTING THE TEXAS MUNICIPAL LEAGUE TO <br />INITIATE AND SUPPORT LEGISLATION CONCERNING AN AMENDMENT <br />TO TEXAS TAX CODE ~23.012 REGARDING THE "INCOME APPROACH" TO <br />VALUATION OF PROPERTY FOR AD VALOREM TAX PURPOSES; <br />PROVIDING THAT THIS RESOLUTION SHALL BECOME EFFECTIVE <br />FROM AND AFTER ITS PASSAGE AND ADOPTION. <br /> <br />WHEREAS, the Texas Tax Code 92.012 provides procedures for the Chief <br />Appraiser to use when applying the "income approach" in valuing property for ad <br />valorem tax purposes; and <br />WHEREAS, in several recent refinery valuation lawsuits, the litigants have taken <br />the position that the Legislature has limited the applicability of the "income approach" to <br />only properties for which a rental market exists, such as for office buildings, retail space <br />and apartments; and <br />WHEREAS, based on this premise, the litigants contend that the income <br />approach may not be used in appraising refineries and petrochemical facilities for <br />property tax purposes; and <br />WHEREAS, the value established under the litigants' approach is dramatically <br />lower than under the current income approach, which results in large amounts of lost <br />revenue to local taxing jurisdictions; and <br />WHEREAS, the City Council of the City of La Porte deems it in the best interest <br />of the City of La Porte to support legislation amending section 23.012 of the Texas Tax <br />Code to clarify that the legislature did not intend to depart from the equality, uniformity, <br />and generally accepted appraisal techniques when originally adopting this statue; and <br />WHEREAS, the City Council of the City of La Porte requests the Texas <br />Municipal League (TML) recognize this issue as an issue having tremendous impact to <br />Texas municipalities and to initiate and support such amendment ofsection 23.012 of <br />Texas Tax Code; <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA <br />PORTE, TEXAS: <br />SECTION 1: That the City Council hereby supports legislation amending section <br />23.012 of the Texas Tax Code to clarify that the legislature did not intend to depart from <br />the equality, uniformity, and generally accepted appraisal techniques when originally <br />adopting this statue. <br />SECTION 2: That the City Council hereby requests the Texas Municipal League <br />(TML) recognize this issue as an issue having tremendous impact to Texas municipalities <br />and to initiate and support such amendment of section 23.012 of Texas Tax Code. <br />SECTION: That this Resolution shall be in full force and effect from and after <br />its passage and adoption. <br /> <br />PASSED AND ADOPTED THIS 14th day of Octo <br /> <br /> <br />~ & <br />W <br />MartIia ~i y Secretary <br />