Methods and Assistance Program MAP Reviews Lori Fetterman

Methods and Assistance Program (MAP) Reviews Lori Fetterman, MAP Supervisor Emily Hightree, MAP Team Lead Property Tax Assistance Division October 12, 2017 1

2010 -17 Mandatory Results Summary Preliminary Results Year No Fails One Fail Two Fails More than Two Fails 2010 58% 16% 11% 15% 2011 51% 19% 17% 13% 2012 48% 22% 18% 12% 2013 49% 28% 17% 7% 2014 68% 12% 11% 9% 2015 74% 13% 10% 3% 2016 58% 23% 16% 3% 2017 68% 22% 5% 5% 2

2010 -17 Mandatory Results Summary Final Results Year No Fails One Fail Two Fails More than Two Fails 2010 77% 8% 6% 9% 2011 81% 9% 5% 5% 2012 76% 12. 5% 10% 1. 5% 2013 87% 10% 1. 5% 2014 80% 3% 11% 6% 2015 86% 6% 6% 2% 2016 87% 6% 6% 1% 3

2010 -17 Recommendation Summary Preliminary Recommendations Year Number of Possible Recommendations Total Preliminary Recommendations (percentage of number possible) Average Preliminary Recommendations per Appraisal District 2010 23, 424 5, 336 (22. 8%) 42 2011 22, 875 5, 799 (25. 3%) 46 2012 8, 793 880 (10%) 7 2013 8, 745 695 (7. 9%) 6 2014 6, 319 337 (5. 3%) 3 2015 6, 248 258 (4. 1%) 2 2016 9, 508 869 (9. 1%) 7 2017 9, 338 893 (9. 6%) 7 4

2010 -16 Recommendation Summary Final Recommendations Year Number of Possible Recommendations Total Final Recommendations (percentage of number possible) Average Final Recommendations per Appraisal District 2010 23, 424 2, 263 (9. 7%) 18 2011 22, 875 1, 398 (6. 1%) 11 2012 8, 793 475 (5. 4%) 4 2013 8, 745 395 (4. 5%) 3 2014 6, 319 186 (2. 9%) 2 2015 6, 248 94 (1. 5%) . 75 2016 9, 508 228 (2. 4%) 2 5

Property Tax Assistance Division Mike Esparza (Director) Education and Customer Service Projects Manager Projects Specialists Outreach and Support Area Information Analysis and Security Area Field Appraiser Operations Area Administrative Support Data Security and Analysis Team Administrative Support Information Services Team Multi-County Property Appraisal Team Field Appraiser Operations East Methods and Assistance Program Communications and Information Projects Manager Projects Specialists Field Appraiser Operations West 6

Methods and Assistance Program Supervisor – Lori Fetterman Mike Esparza (Director) Jeff Van Pelt (Outreach and Support Manager) Methods & Assistance Program (MAP) Team Lead – Emily Hightree MAP Team: 12 MAP Reviewers 7

MAP Team Workload Even Year Cycle: 128 Districts Reviewed Odd Year Cycle: 125 Districts Reviewed 12 MAP Reviewers 10 -11 Appraisal Districts Per MAP Reviewer Reviews Conducted January through June (26 Weeks) 2. 3 Weeks Per Appraisal District 8

Onsite at Appraisal District Week 3 Preparing for Onsite Visit Working through PDR Information received from Appraisal District Week 2 Week 1 MAP Reviewer Schedule Closing Out and Submitting Reports Finishing up any Outstanding Questions Left from Onsite and Completing MAP Reports Preparing for Next Appraisal District 9

Importance of PDR Information Increased Efficiency of MAP Review Questions on MAP Review may be answered/addressed before Reviewer begins onsite visit Any issues found within PDR Information may be Brought to the Attention of Appraisal District Sooner MAP Reviewer Becomes Familiar with Appraisal District, Board of Director, Appraisal Review Board Operations 10

Preliminary and Onsite Data Access 11

Preliminary and Onsite Data In conducting the MAP review, the Tax Code authorizes the Comptroller to access all records and reports of the appraisal district. The complexity of the MAP review process and the large number of appraisal districts under review requires that appraisal districts provide the information requested in a timely manner or have it available when the reviewer is onsite. If the information is not available to the reviewer timely, the answer to the corresponding question(s) will be a “No. ” 12

Preliminary Data 2018 -19 Cycle Tier 1 Tier 2 Tier 3 31 items requested 29 items requested 13

New Preliminary Data Requested for 2018 -19 Cycle Identify if appraisal district follows Tax Code Section 6. 03 or 6. 031 for board of director selection Identify if Tax Assessor-Collector has been appointed to the appraisal district’s board of directors Most recent notice of the public hearing to approve reappraisal plan List of current board of director members 14

Onsite Data and Access It is important to have the data from the onsite data list ready to be accessed when the MAP reviewer arrives at the appraisal district. The types of documents and systems to be accessed will be discussed as we go through the questions. 15

Feedback 2014 -15 Review Cycle 2016 -17 Review Cycle 2017 -18 Review Cycle • 9 responses were received • 43 responses were received • 32 changes made based upon responses received • Responses currently being received 16

Pass/Fail Questions Mapping Reappraisal Plan Appraisal Records and Procedures Reproduction of values 17

Yes/No Question Areas Governance Taxpayer Assistance Operating Procedures Appraisal Standards, Procedures and Methodology 18

Governance Review Questions Chief Appraiser Evaluation Taxing Unit Voting Entitlement • Notice of Voting Entitlement • Ballot Sent to Taxing Units Chief Appraiser Training • Investment Training Board of Directors Meetings • Quarterly • Quorum Management Training/Professional Development Reappraisal Plan • Adoption Deadline • Notice • Public Hearing 19

Governance Review Questions Budget • Preliminary Requirements • Notice • Public Hearing Agricultural Appraisal Advisory Board of Directors • Criteria • Vacancy Financial Audit Allocation Statement 20

Taxpayer Assistance Review Questions Appraisal District Website Complaint Procedures • Appraisal District • ARB Utility Reports Annual Reports Open Records Requests Denying, Modifying or Cancelling Exemptions 21

Taxpayer Assistance Review Questions Media Packet Notices Electronic Protests • Access Instructions • Comparable Sales Data • Evidence 22

Operating Procedures Questions Operations Survey Preparation and Certification of the Estimate of Taxable Value Processing Arbitration Requests Appraisal Roll Corrections • 25. 25(b) • 25. 25(d) Partial Exemption List Records Retention 23

Operating Procedures Questions ARB Disaster Recovery and Mitigation Evidence Provided During Appeals Process Appraisal Records Submission to the ARB • Orders of Determination • Protests and Challenges by Deadline • Approve Records Timely PTAD Classification Guidelines Agent Authorization Forms • Properties Correctly Categorized • Exempt Properties Correctly categorized 24

Operating Procedures Questions Reappraisal Plan • Sending Copies • Define Market Areas • Identify Properties to be Appraised EARS/EPTS • Timely • Valid 25

Appraisal Standards, Procedures and Methodology Questions Inspection Dates Appraisal Cards Mass Appraisal Reports Appraisal Services and Mapping Contract Reviewing, Verifying or Evaluating the Work of Contractors Ratio Studies 26

Appraisal Standards, Procedures and Methodology Questions Adjusting Cost Schedules • Neighborhood or Property Specific Factors • Residential • Commercial Personal Property Inspections Rendition Penalties Income Approach Quality Control • Multi-family Properties • Office Properties • Retail Properties • Warehouse/Mini Storage Market Rents 27

Appraisal Standards, Procedures and Methodology Questions Verified Sales File Multi-Family Low Income • Land • Residential • Commercial • Multi-Family Wildlife Management • Minimum Acreage Requirement • Inspections Agricultural Use Appraisal • Net-to-Land • Inspections • Applications and Documentation • Penalty Degree of Intensity Standards • Evaluated and/or Updated • Following Current Guidelines 28

Reminder November 1 st: Data Due for 2017 Final Reports January 2018: 2017 Final MAP Reports Released Outstanding Recommendations: Appraisal District has 1 Year to Remedy Recommendations 29

For More Information Visit the MAP Website: http: //www. comptroller. texas. gov/taxinfo/proptax/map/index. html Call Us: Lori Fetterman 888 -207 -3668 Emily Hightree 512 -936 -8506 Email Us: Lori. Fetterman@cpa. texas. gov Emily. Hightree@cpa. texas. gov 30