Austin Property Tax Hike Battle
Property Owners Protest Soaring Values:
The city held a special meeting dedicated entirely to property tax appeals, with residents and business owners challenging significant increases in their assessed property values, some rising over 35-60% in a single year.Tax Burdens and Development Concerns:
Appellants expressed worry that rapidly increasing property taxes, sometimes consuming 20% of gross income for businesses, could hinder planned remodeling and improvements.Appraisal Methods Under Scrutiny:
Discussions centered on the basis for appraisals, comparing market values, construction costs, depreciation, and sales of similar properties in the area.City Largely Upholds Assessments:
Despite the taxpayers' concerns, the city generally sustained the valuations set by the Tax Department and Board of Equalization for both commercial and residential properties, though one comparative property was flagged for further investigation.Unheard Appeals Sustained:
Many scheduled appeals were effectively denied due to the appellants' absence, leading to their original assessed values being confirmed by the city.
Full Transcript
=CITY OF AUSTIN, TEXAS MINUTES OF THE CITY COUNCIL CITY OF AUSTIN, TEXAS Special Meeting February 08, 1971 9:30 Α.Μ. COUNCIL CHAMBERS, CITY HALL 8 196 The meeting was called to order with Mayor LaRue presiding. Roll Call: Present: Councilmen Gage, Johnson, MacCorkle, Price, Mayor LaRue Absent: Councilmen Atkison, Janes Mayor LaRue announced that this was a Special Meeting called for the purpose of hearing Tax Appeals. At 9:30 A.M. the Council heard the following Tax Appeals: H.J. MAY ΤΟΝ Full Value By George Mayton by the Tax Dept. 1969 Full Value by the Tax Dept. 1970 Assessed Value by Tax Dept. Value Assessed Rendered by Owner Value Fixed by Board 3800 Block LAND $2,837 $12,764 $9,570 Medical IMPS 0 0 0 $2,130 0 No Appeal Parkway South 44.67 feet Lot 2, TOTAL $2,837 Block 2, H.B. Seiders Parcel No. 2-2102-1103 $12,764 $9,570 $2,130 3800 Block LAND $2,032 $11,430 $8,570 $1,520 No Appeal Medical IMPS 0 0 0 0 Parkway Center 40 feet Lot 2, Block TOTAL $2,032 2, H.B. Seiders Parcel No. 2-2102-1104 $11,430 $8,570 $1,520 C = CITY OF AUSTIN. TEXAS 197 February 8, 1971 H.J. MAYΤΟΝ Full Value Full Value By George Mayton by the Tax by the Tax Assessed Value by Value Rendered Dept. 1969 Dept. 1970 Tax Dept. by Owner Assessed Value Fixed by Board 3800 Block LAND $2,985 $13,430 $10,070 $2,240 No Appeal Medical IMPS 0 0 0 0 Parkway North 8.17 TOTAL $2,985 $13,430 $10,070 $2,240 feet of Lot 2 & South 38.83 feet of Lot 3, Block 2, H.B. Seiders Subdd Parcel No. 2-2102-1105 3808-3830 LAND $52,359 $105,845 $ 79,380 $39,270 No Appeal North Lamar IMPS 64,319 75,404 56,550 48,240 Lots 4, 5, and 6, Block 2, H.B. Seiders Subd. TOTAL $116,678 $181,249 $135,930 $87,510 Parcel No. 2-2102-1115 3800 North LAND $25,634 $54,804 $41,100 $19,230 No Appeal Lamar IMPS 29,106 31,420 23,570 21,830 Lot 1, E. Seiders TOTAL $54,740 $86,224 $64,670 $41,060 Subdivision' Parcel No. 2-2102-1116 3807-3809 Medical Parkway Lot 1, LAND $225,265 $ 73,625 $ 55,220 $18,950 No Appeal Block 2, IMPS 97,570 106,004 79,500 73,180 H.B. Seiders and Lot 2, TOTAL $122,835 $179,629 $134,720 $92,130 E. Seiders Parcel No. 2-2102-1117 Mr. George Mayton stated that he was seeking advice rather than really appealing. He stated that the assessment on these properties had increased about 35% over the past year. The stated that City taxes alone took about 20% of the gross income from this shopping center. He expressed doubts about following through on re-modeling and improving the property which had been planned. Mr. Jack Klitgaard, Tax Assessor-Collector, discussed the basis for appraisal of these properties. He noted that market values had probably increased more rapidly than at any time in the past. There was discussion concerning the appraised values of other properties in the area. Councilmen Price and Gage expressed the view that the appraisal which averaged out to $2.45 per square foot was too high for an established shopping center of this nature. There was discussion of sale prices in the area. In response to Mr. Mayton's question, Mr. Klitgaard discussed depreciation schedules for buildings. He noted that for most buildings in 1970 the increased cost of construction materials had outstripped the depreciation allowed. February 8, 1971 198 CITY OF AUSTIN, TEXAS Mayor LaRue announced that the hearing would be recessed for a full Council. RECESSED MEETING The meeting was re-convened with Mayor LaRue presiding. Roll Call: Present: Absent: Councilmen Johnson, MacCorkle, Price, Mayor LaRue Councilmen Atkison, Gage, Janes At 11:00 A.M. the Council heard the following Tax Appeals: CHARLEY ANDERSON ESTATE 11:00 Α.Μ. By Charles G. Anderson Full Value Full Value Assessed Value Assessed by the Tax Dept. 1969 by the Tax Value by Rendered Dept. 1970 Tax Dept. by Owner Value Fixed by Board Loop 111 LAND $ $168,355 $126,270 Signed $126,270 30.61 acres IMPS 0 0 0 Willis Avery and John TOTAL $168,355 $126,270 $126,270 Applegate Survey Parcel No. 2-2921-0201 Mr. Charles Anderson appealed the valuation of about $5,500 an acre by stating that a corner lot at Cameron Road and Ed Bluestein of a little less than an acre was valued at only $5,000. He noted that this latter property had recently sold for about 60 per square foot. Mr. Klitgaard stated that about 50% of the corner property being compared was hurt by a slope down to a creek. He felt that this same creek hurt a smaller percentage of Mr. Anderson's property. Mr. Klitgaard was unaware of the recent sale to which Mr. Anderson referred, stating that it must have been since the appraisal had been made. Mr. Anderson was unsure that the 60 per square foot figure was accurate. Councilman Price moved that Mr. Klitgaard investigate the comer property discussed to determine if it was under-valued and that the Council sustain the assessed value set by the Board of Equalization on the property in question as follows: CHARLEY ANDERSON ESTATE By Charles G. Anderson. Assessed Value Fixed by Board Council Action LAND $126,270 $126,270 IMPROVEMENTS 0 Willis Avery and John Applegate Survey Parcel No. 2-2921-0201 TOTAL $126,270 $126,270 Loop 111 30.61 acres vote: 199 _ CITY OF AUSTIN, TEXAS February 8, 1971 The motion, seconded by Councilman MacCorkle, carried by the following Ayes: Noes: Councilmen MacCorkle, Johnson, Price, Mayor LaRue None Absent: Councilmen Atkison, Gage, Janes JOHN F. ΝΙΧΟΝ Full Value by the Tax Dept. 1969 Full Value by the Tax Dept. 1970 Assessed Value by Tax Dept. 5605 Windward Dr. Lot 1-A, LAND $ 3,007 Resub. of IMPS 14,450 $ 4,810 15,936 $$36,610 11,950 $ 2,000. 10,000 Value Rendered by Owner Assessed Value Fixed by Board $ 3,610 11,950 Lot 1, Block I, Windsor Park TOTAL $17,457 $20,746 $15,560 $12,000 $15,560 3, Section 3, Lot 21, Block I, Royal Oak Estates, Section 4 Parcel No. 2-2020-0414 Mr. John Nixon did not believe that the 60% increase in valuation of the land was realistic, because this was not vacant land and it would be an expense to tear down the house to make the property equivalent to vacant land. He questioned the four-year assessment system used; he questioned the fact that his improvements had not depreciated in value. He stated that his tax had increased 161% over the past 10 years. He cited lower valuation of houses across the street. and he mentioned noise problems of music and airplanes in the neighborhood. Mr. Klitgaard stated that the same basis of appraisal had been used for this property as for that across the street. He also noted that 15% depreciation had been allowed on the house, but it had not offset the increase in construction costs. He noted that sales in the area were higher than the full value assigned. Councilman MacCorkle moved that the Council sustain the assessed value set by the Board of Equalization as follows: JOHN F. ΝΙΧΟΝ Assessed Value Fixed by Board 5605 Windward Dr. LAND $ 3,610 Lot 1-A, Resub. of IMPROVEMENTS 11,950 Lot 1, Block I, Windsor Park 3, Section 3 and Lot 21, TOTAL $15,560 Block I, Royal Oak Estates, Sec. 4 Parcel No. 2-2020-0414 Council Action $ 3,610 11,950 $15,560 - CITY OF AUSTIN, TEXAS: February 8, 1971 200 The motion, seconded by Councilman Price, carried by the following vote: Ayes: Councilmen Johnson, MacCorkle, Price, Mayor LaRue Noes: None Absent: Councilmen Atkison, Gage, Janes HEARINGS CANCELLED The Tax Appeals hearings scheduled for 1:30 P.M. were cancelled as Councilmen Atkison, Gage, Janes, and Johnson would be absent. APPEALS DENIED It was noted that the other appellants scheduled to be heard at 9:30 A.M. and 11:00 A.M. were absent. Councilman MacCorkle moved that the Council sustain the assessed value set by the Board of Equalization as follows: Assessed Value Fixed by Board Council Action MARTIN J. DESTEFANO 2510 San Gabriel South 65 feet Lots 23 and 24, Block 6, Out- lot 54, Division D, LAND IMPROVEMENTS $5,900 3,450 $5,900 3,450 Harwood Subd. Parcel No. 2-1400-0905 TOTAL $9,350 $9,350 3108 Walling Dr. North 64.5 feet av. of Lots 13 and 14, Speedway Heights Parcel No. 2-1505-0207 LAND IMPROVEMENTS $ 3,710 10,620 $ 3,710 10,620 TOTAL $14,330 $14,330 1409 Braes Ridge Drive LAND Lot 5, Braes Ridge Addition Section 1 Parcel No. 2-2315-1205 IMPROVEMENTS $ 2,730 11,810 $ 2,730 11,810 TOTAL $14,540 $14,540 FRANK DESTEFANO by Martin J. DeStefano Personal Property located FURNITURE $ 1,410 $ 1,410 at 1915-1917 Barge OLTORF APARTMENTS, By Martin J. DeStefano Personal Property located at 918 West Oltorf C.K. JAMISON February 8, 1971 201 CITY OF AUSTIN, TEXAS Assessed Value Fixed by Board Council Action FURNITURE and FIXTURES $7,330 $7,330 5306 Woodrow LAND $2,010 Lot 22 less East 15 IMPROVEMENTS 3,920 $2,010 3,920 feet Block 13, North Loop Terrace Parcel No. 2-2705-0611 TOTAL $5,930 $5,930 5307 Joe Sayers LAND $2,020 $2,020 Lot 11, Tess West 5 IMPROVEMENTS 0 0 feet Block 13, North Loop Terrace ت Parcel No. 2-2705-0619 TOTAL $2,020 $2,020 400 Swanee LAND $1,670 $1,670 East 23 feet Lot 19 IMPROVEMENTS 8,310 8,310 and West 27 feet Lot 20j Block 5, Silverton Heights Parcel No. 2-3111-0115 404 Swanee TOTAL $9,980 $9,980 LAND $ 1,670 $ 1,670 East 50 feet Lot 18, Block 5, Silverton Heights Parcel No. 2-3111-0117 IMPROVEMENTS 10,990 10,990 TOTAL $12,660 $12,660 7107 Guadalupe LAND Lot 4, Block 5, IMPROVEMENTS $ 2570 995640 $ 2,570 9,640 Silverton Heights Parcel No. 2-3111-0132 TOTAL $12,210 $12,210 505 Kenniston Dr. LAND $ 2,330 $ 2,330 Lot 20 less North 5 IMPROVEMENTS 27,560 27,560 feet Block 7, Silverton Heights Parcel No. 2-3111-0401 TOTAL $29,890 $29,890 107 East 47th Street LAND $1,090 $1,090 Lot 2, C.K. Jamison IMPROVEMENTS 8,570 8,570 Subdivisión Parcel No. 2-2207-0917 TOTAL $9,660 $9,660 CITY OF AUSTIN, TEXAS February 8, 1971 202 Assessed C.K. JAMISON Value Fixed by Board Council Action 4610 Avenue F LAND Lot 1, C.K. Jamison Subdivision IMPROVEMENTS $2,330 2,150 $2,330 2,150 Parcel No. 2-2207-0918 TOTAL $4,480 $4,480 ED JANSEN 608 Crestland Dr. LAND Lot 15-A, Block C, Northway Crest Section 2, Resubdivision of Portions IMPROVEMENTS $2,160 5,830 $2,160 5,830 of Blocks C, G, and н Parcel No. 2-3310-0626 TOTAL $7,990 $7,990 JAMES F. JAPHET 212 West 51st Street Lot 5, Koenig Place Annex Parcel No. 2-2308-0247 LAND $1,690 IMPROVEMENTS 9,240 $1,690 9,240 TOTAL $10,930 $10,930 210 West 51st Street Lot 6, Koenig Place Annex LAND $ 1,670 IMPROVEMENTS 9,110 $ 1,670 9,110 Parcel No. 2-2308-0259 TOTAL $10,780 $10,780 ESTELLE MC DONALD LOVE 301 Brentwood North 101.48 feet Lot 9, Block K, Plaza Place Parcel No. 2-2911-0609 LAND IMPROVEMENTS $ 1,900 3,500 $ 1,900 3,500 TOTAL $55,400 $ 5,400 LOUIS W. LEE 5705 Delwood Drive Lot 41, Block C, Delwood 4 East Section 3 Parcel No. 2-2217-1035 DR. HORACE O. POOLE LAND $ 2,710 IMPROVEMENTS 10,350 $ 2,710 10,350 TOTAL $13,060 $13,060 4526 Burnet Road Lot 10, Block 24 Melrose Terrace Parcel No. 2-2502-1201 LAND IMPROVEMENTS $ 9,020 $8,430 $ 9,020 8,430 TOTAL $17,450 $17,450 =CITY OF AUSTIN, TEXAS February 8, 1971 203 The motion, seconded by Councilman Johnson, carried by the following vote: Ayes: Councilmen Johnson, MacCorkle, Price, Mayor LaRue Noes: None Absent: Councilmen Atkison, Gage, Janes ADJOURNMENT The Council then adjourned. ATTEST: City Clerk APPROVED: Mayor