Valuation Methodologies: The Market Sales Approach

Three methodologies are normally used in the determination of the market value of a property. These methodologies include: the market sales, the cost, and the income approach.

Section 23.0101 of the Texas Tax Code provides: "In determining the market value of property, the chief appraiser shall consider the cost, income, and market data comparison methods of appraisal and use the most appropriate method."

In this and future issues, we will summarize and examine each of the various approaches to property value determination. This month we look at the "market sales" approach.

Read the article.

RECENT CASELAW

School Funding Plan Held Unconstitutional

On September 15, the school financing plan (commonly known as Robin Hood) was ruled unconstitutional by Travis County State District Judge John Dietz. The ruling came in a lawsuit brought against the state by more than 300 of the 1,037 local school districts in Texas. The plaintiff school districts contended that the current system of financing, in which wealthier school district must share property tax revenue with poorer school districts, violates the Texas Constitution by not providing equal educational opportunities.

Judge Dietz delayed the effect of his ruling, but indicated that he would issue an injunction ordering state funding of public education to cease within a year if the Legislature does not find an adequate financing solution. Without state funding, it is probable that most, if not all, public schools would have to close. In other words, the school districts won a court victory that, if enforced, would result in their closure.

The Legislature is expected to again address the issue of school financing in the next legislative session. Meanwhile, the attorney general has indicated that he will appeal Judge Dietz's ruling.

Upcoming deadlines

October 1
Statutory deadline for tax assessor to send 2004 tax bills. (However, the statute also provides that the assessor can send the bills "as soon thereafter as practicable." Also, a late transmittal is not a defense to payment.)

November 30
Deadline to pay first half of 2004 taxes in taxing units adopting the split-payment option under Section 31.03