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HomeMy WebLinkAboutIR 0748 (3) INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-0748 - To the Mayor and Members of the City Council September 19, 2023 AA AA. Page 1 of 3 ern SUBJECT: LEGISLATIVE CHANGES TO PROCESS FOR SELECTING MEMBERS 1875 FOR THE BOARD OF DIRECTORS OF APPRAISAL DISTRICTS The purpose of this informal report is to provide an overview of the process for the City Council to make appointments to appraisal districts' boards of directors and highlight recent legislative changes. Chapter 6 of the Texas Property Tax Code creates an appraisal district in every county in the State of Texas. Each appraisal district is governed by a board of directors. Less Populous Counties For a county with a population of less than 75,000, the board generally consists of five individuals who are "appointed by vote" of the governing bodies of participating taxing units. If the county assessor-collector is not appointed as one of the five regular members, she or he still serves but as a nonvoting member. For these appraisal districts, board members serve two-year terms beginning on January 1 of even- numbered years. Wise County, which includes property within the City of Fort Worth, falls under this rule. More Populous Counties For a county with a population of 75,000 or more, the board consists of (1) five members "appointed by vote" of the taxing units, (2) three directors who are elected by a countywide vote, and (3) the county assessor collector who serves ex off icio. Directors of these districts have four-year terms with "appointed by vote" members' terms beginning on January 1 of every other even-numbered year and elected members' terms beginning on January 1 of every other odd-numbered year. This composition applies to all of the other counties into which Fort Worth extends (Tarrant, Denton, Parker, and Johnson). This structure was newly adopted during the second special called legislative session as part of S132. Phasing in the new structure with longer and staggered terms will require that taxing units such as the City act to "appoint by vote" in 2023 and again in 2024. After the transition period ends, the "appointed by vote" process will revert to taking place in the fall of each odd numbered year. Appointed by Vote Process The appointment by vote process involves two steps — nomination and casting of votes. Each taxing unit can nominate one candidate for each of the five "appointed by vote" positions to be filled on a board. Nominations must be made by a resolution adopted by the City Council as governing body, and the City's nominees for a district must be submitted to that district's chief appraiser before October 15. After the chief appraiser has nomination information from the taxing units, she or he prepares a ballot that lists all "appointed by vote" nominees in alphabetical order by last name. The chief appraiser for each district must provide a ballot to the presiding officer of each taxing unit before October 30. Taxing units in each district then cast their votes for one or more nominees. For each appraisal district, there are 1,000 votes available for each "appointed by vote" directorship to be filled. With a district governed by five members that means there are a total of 5,000 votes to be cast. Votes are allotted based on a comparison of each unit's property tax in the district during the prior year versus the total of all taxes imposed in the district. For example, if the City's tax assessment in a district were 10% of the total, the City would be allotted 500 of the 5,000 votes. Votes must be cast by a resolution adopted by the City Council, and the deadline for advising the chief appraiser of how votes have been cast has historically been before December 15. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-0748 - To the Mayor and Members of the City Council September 19, 2023 AA AA. Page 2 of 3 ern SUBJECT: LEGISLATIVE CHANGES TO PROCESS FOR SELECTING MEMBERS 1875 FOR THE BOARD OF DIRECTORS OF APPRAISAL DISTRICTS 2021 Legislative Change HB 988 was adopted during the 2021 regular session and signed by the Governor. Among other changes, that bill added a special secondary deadline for casting votes for an appraisal district appointment in certain cases. For the appraisal district of a county with a population of 120,000 or more (Tarrant, Denton, Parker, and Johnson), a taxing unit that is entitled to cast at least five percent of the total votes must "determine its vote by resolution adopted at the first or second open meeting . . . held after the date the chief appraiser delivers the ballot [and] must submit its vote to the chief appraiser not later than the third day following the date the resolution is adopted." Because the City of Fort Worth extends into five counties, there are five appraisal districts that assess values for property in the City. However, the only City territory in Johnson County is owned by the City itself and is not subject to tax. Similarly, the City's percent of tax revenues in Wise County is less than one one hundredth of a percent of the total. As a result the City has no power to nominate or vote for the board of the Central Appraisal District of Johnson County or the Wise County Appraisal District. For Parker and Denton Counties, Fort Worth's allocation of votes falls well below the five percent threshold, and the traditional December 15 deadline is the only one that applies. However, the secondary deadline applies to Fort Worth's appointment by vote for the Tarrant Appraisal District board. Appointment by Vote Process for 2024 Terms Staff recommends employing the following schedule for the City's appointment by vote for the appraisal district terms that begin January 1, 2024: Date Action September 26, 2023 Consider resolutions to nominate candidates (No business meetings on Oct. 3 or 10) October 31, 2023 Consider resolution to cast votes for Tarrant Appraisal District (Meets the "first or second open meeting" requirement) November 1, 2023 Notify Tarrant chief appraiser of City's votes (Deadline is Nov 5) November 14, 2023 Consider resolutions to vote for Denton, Parker, and Wise (Well in advance of deadline) November 15, 2023 Notify chief appraiser of each district of City's votes (Deadline is December 15, 2023) The following chart summarizes the key information for each of the appraisal districts: ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-0748 - To the Mayor and Members of the City Council September 19, 2023 AA A� Page 3 of 3 ern SUBJECT: LEGISLATIVE CHANGES TO PROCESS FOR SELECTING MEMBERS 1875 FOR THE BOARD OF DIRECTORS OF APPRAISAL DISTRICTS County Board Compositi Term CFW Votes Deadline Deadlines to Vote to and Notify Chief Nominate Appraiser and Notify Chief Appraiser Tarrant 9 Members Total 4 years 600 (8.3%)** Before Take vote at first or • 5 "Appointed October second open meeting by Vote" of "Appointed" 15, 2023 after receiving ballot Taxing Units even (October 31); • 3 Elected numbered Countywide years Must notify chief • Assessor- appraiser of vote by Collector Elected odd third day after vote is numbered taken years Denton Same as Tarrant Same as 60 (1.2%) Before Take Vote and Notify Tarrant October Before December 15, 15, 2023 2023 Parker Same as Tarrant Same as 25 (0.5%)** Before Take Vote and Notify Tarrant October Before December 15, 15, 2023 2023 Johnson Same as Tarrant Same as 0 (0%) N/A N/A Tarrant Wise 5 Members Total 2 years (even 0 (0.00995%) N/A N/A "Appointed by Vote" numbered of Taxing Units years) **Estimates based on 2021 If you have any questions, please call Denis McElroy, Assistant City Attorney, at 817-392-7600. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS