HomeMy WebLinkAboutR-2002-35
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: October 14 20
Appropriation
Requested By:
Source of Funds: Nt A
Department: Fill:illl~e
Account Number: NtA
Report:
Resolution: XX Ordinance:
Amount Budgeted: Nt A
Exhibits:
Resolution
Amount Requested: N/~
Exhibits:
Budgeted Item: YES NO
Exhibits:
SUMMARY & RECOMMENDATION
The Texas Tax Code S23.012 provides procedures for the Chief Appraiser to use when applying the
"income approach" in valuing property for ad valorem tax purposes. In several recent refinery valuation
lawsuits, the litigants have taken the position that the Legislature has limited the applicability of the
"income approach" to only properties for which a rental market exists, such as for office buildings, retail
space and apartments. Based on this premise, the litigants contend that the income approach may not be
used in appraising refineries and petrochemical facilities for property tax purposes.
The value established under the litigants' approach is dramatically lower than under the current income
approach, which results in large amounts oflost revenue to local taxing jurisdictions. In lieu taxes are one
of 0 ur major revenue sources a nd staff feels it in the b est interest 0 f the City 0 f LaP orte to support
legislation amending section 23.012 of the Texas Tax Code to clarify that the legislature did not intend to
depart from the equality, uniformity, and generally accepted appraisal techniques when originally
adopting this statue. The City Council can request that the Texas Municipal League (TML) recognize this
issue as an issue having tremendous impact to Texas municipalities and to initiate and support such
amendment of section 23.012 of Texas Tax Code.
Action Required bv Council:
Adopt Resolution requesting TML to initiate and support legislation concerning an amendment to
Texas Tax Code 23.012 regarding the "Income Approach" to valuation of property for Ad
Valorem Tax Purposes.
)0/' /02
Dat~ I
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RESOLUTION NO. 02- 3~
A RESOLUTION REQUESTING THE TEXAS MUNICIPAL LEAGUE TO
INITIATE AND SUPPORT LEGISLATION CONCERNING AN AMENDMENT
TO TEXAS TAX CODE ~23.012 REGARDING THE "INCOME APPROACH" TO
VALUATION OF PROPERTY FOR AD VALOREM TAX PURPOSES;
PROVIDING THAT THIS RESOLUTION SHALL BECOME EFFECTIVE
FROM AND AFTER ITS PASSAGE AND ADOPTION.
WHEREAS, the Texas Tax Code 92.012 provides procedures for the Chief
Appraiser to use when applying the "income approach" in valuing property for ad
valorem tax purposes; and
WHEREAS, in several recent refinery valuation lawsuits, the litigants have taken
the position that the Legislature has limited the applicability of the "income approach" to
only properties for which a rental market exists, such as for office buildings, retail space
and apartments; and
WHEREAS, based on this premise, the litigants contend that the income
approach may not be used in appraising refineries and petrochemical facilities for
property tax purposes; and
WHEREAS, the value established under the litigants' approach is dramatically
lower than under the current income approach, which results in large amounts of lost
revenue to local taxing jurisdictions; and
WHEREAS, the City Council of the City of La Porte deems it in the best interest
of the City of La Porte to support legislation amending section 23.012 of the Texas Tax
Code to clarify that the legislature did not intend to depart from the equality, uniformity,
and generally accepted appraisal techniques when originally adopting this statue; and
WHEREAS, the City Council of the City of La Porte requests the Texas
Municipal League (TML) recognize this issue as an issue having tremendous impact to
Texas municipalities and to initiate and support such amendment ofsection 23.012 of
Texas Tax Code;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA
PORTE, TEXAS:
SECTION 1: That the City Council hereby supports legislation amending section
23.012 of the Texas Tax Code to clarify that the legislature did not intend to depart from
the equality, uniformity, and generally accepted appraisal techniques when originally
adopting this statue.
SECTION 2: That the City Council hereby requests the Texas Municipal League
(TML) recognize this issue as an issue having tremendous impact to Texas municipalities
and to initiate and support such amendment of section 23.012 of Texas Tax Code.
SECTION: That this Resolution shall be in full force and effect from and after
its passage and adoption.
PASSED AND ADOPTED THIS 14th day of Octo
~ &
W
MartIia ~i y Secretary