2015 Mass Appraisal Report

102 Pages·2015·2.41 MB·English

2015 Mass Appraisal Report
Bud Black, RPA/CTA
Chief Appraiser

BudBlack,RPA/CTAChiefAppraiser
Freestone Central
DonAwalt,RPA/CTADeputyChiefAppraiser
Appraisal District Phone: [phone]
218NMountStreet Fax:[phone]
Email:[email protected]
FairfieldTX 75840
www.freestonecad.org
May 28, 2015
Members of the Freestone County Appraisal Review Board
218 N Mount Street
Fairfield TX
In accordance with the laws of the State of Texas and Uniform Standards
of Professional Appraisal Practices (USPAP), I, with the assistance of my staff,
have performed a diligent inquiry to ascertain all property subject to appraisal by
the Freestone Central Appraisal District. Those properties have been appraised
and listed on the appraisal rolls for each of the taxing jurisdictions within the
district.
This report summarizes the appraisal considerations and opinions of me
and my staff.
The market and taxable values presented in this report are representative
of the values included on the Notices of Appraised Values delivered to property
owners in May 2015.
Final values will be certified to all taxing jurisdictions once you have heard
substantially all property owner protests and taxing unit challenges on or before
July 25, 2015.
Bud Black, CTA/RPA
Chief Appraiser

Index
1.00Introduction.........................................................................................................................................7
2.00AreaAnalysis.......................................................................................................................................9
3.00ReappraisalPlan...............................................................................................................................11
PlanRequirements.........................................................................................................................11
PlanPerformance..........................................................................................................................11
ValuationApproachRequirements.........................................................................................................15
ValuationRequirementsApplied.............................................................................................................17
PerformanceTesting......................................................................................................................17
IndependentPerformanceTests.......................................................................................18
PilotStudies......................................................................................................................18
ValuationAnalysis(ModelCalibration)..............................................................................18
MarketAdjustmentsorTrendingFactors..........................................................................19
FinalValuationSchedules.................................................................................................20
ValuationofRealEstate.................................................................................................................20
Land..................................................................................................................................20
Improvements...................................................................................................................21
SingleFamilyHomes...........................................................................................22
TreatmentofResidenceHomesteads..................................................................24
MobileHomes......................................................................................................24
Multi-PurposeBuildings........................................................................................25
Commercial..........................................................................................................26
MiscellaneousImprovements...............................................................................26
ValuationofBusinessPersonalProperty.......................................................................................26
Machinery,Equipment,Furniture&Fixtures.....................................................................27
Inventory...........................................................................................................................27
Dealer’sSpecialInventoryProperty..................................................................................27
ValuationofMinerals,Utilities,&IndustrialProperty......................................................................28
Resources..................................................................................................................................................29
Staffing...........................................................................................................................................29
AdministrativeStaff...........................................................................................................29
AppraisalStaff...................................................................................................................30
TaxpayerAssistanceStaff................................................................................................31
MappingStaff....................................................................................................................32
ComputerResources.....................................................................................................................32
ComputerAssistedMassAppraisalSystem(CAMA).......................................................32
GeographicInformationSystems(GIS)............................................................................32
OtherResources............................................................................................................................33
LimitingConditions&Certification.........................................................................................................35
AddendumIndex.......................................................................................................................................37

Introduction
The purpose of this report is to summarize the methods and techniques utilized bythe Freestone
Central Appraisal District (here after referred to as FCAD) in the valuation and revaluation of taxable
property within Freestone County. This report is prepared in accordance with Standard 6 of the Uniform
StandardsofProfessionalAppraisalPractice,effectiveasofJanuary1,2015.
The values reported herein have not been challenged or adjusted as the result of taxpayer filed
protestsbeforetheAppraisalReviewBoard. FinalvalueswillbecertifiedbytheChiefAppraiserbyJuly25,
2015 and after the Appraisal Review Board has made final determinations on protested properties that
compriseatleaseninety-five percent(95%)oftheappraisalroll.
FCADisacentralappraisaldistrictformedbytheTexasLegislaturein1979andischargedwiththe
appraisalofalltaxablepropertywithinthetaxingentitieswithinthedistrict’sboundaries. Itisresponsiblefor
providingappraisedvaluesforportionsoftaxingjurisdictionswhicharesituatedinFreestoneCounty.
Thedistrictappraisesalltaxablepropertyforthefollowingtaxingauthorities:
 FreestoneCounty,
 CityofFairfield,
 CityofTeague,
 CityofWortham,
 DewI.S.D.,
 TeagueI.S.D.,and
 TeagueHospitalDistrict
Additionally, the district provides appraisals of taxable property within Freestone County for the
followingentitieswhoseterritoryextendsintomoreonecounty.
 CityofStreetman,
 BuffaloI.S.D.,
 FairfieldI.S.D.,
 OakwoodI.S.D.,
 CorsicanaI.S.D.,
 WorthamI.S.D.,
 MexiaI.S.D.,and
 FairfieldHospitalDistrict
TheTexasPropertyTaxCodegovernsthelegal,statutory,andadministrativerequirementsofthe
appraisaldistrict. Itisgovernedbyaboardofdirectorsappointedbythetaxingunitswithinits boundaries.
The chief appraiser, appointed by the board of directors, is the chief administrator and chief executive
officeroftheappraisaldistrict.
Theappraisaldistrictisresponsibleforlocalpropertytaxappraisalandexemptionadministrationfor
thefifteentaxingunitssituatedinwholeorinpartwithinthecounty. Eachtaxingunitadoptsitsowntaxrate
to generate revenue to pay for such things as police and fire protection, public schools, road and street
maintenance, courts, water and sewer systems, and other public services. The CAD also determines
eligibilityforvarioustypesof propertytax exemptions suchas thosefor homeowners,theelderly,disabled
veterans,andcharitableandreligiousorganizations.
Section23.01(b) requires theappraisaldistricttodeterminemarket value of propertyaccording to
generally accepted appraisal methods and techniques. Mass appraisal standards must comply with the
UniformStandardsofProfessionalAppraisalPractice(USPAP).
The definition of market value as established by the State Property Tax code differs from the
definitionestablishedbyUSPAP,therefore,ajurisdictionalexceptionapplies.
Thefollowingdefinitionofmarketvalue,Section1.04of theTexas PropertyTax Code,means the
priceatwhichapropertywouldtransferforcashoritsequivalentunderprevailingmarketconditionsif:
 exposedforsaleintheopenmarketwithareasonabletimeforthesellertofindapurchaser;
 both the seller and the purchaser know all of the uses and purposes to which the property is
adaptedandforwhichitiscapableofbeingusedandoftheenforceablerestrictionsonitsuse;
and,
 Boththeseller andpurchaser seek tomaximizetheir gains andneither is in a position to take
advantageoftheexigenciesoftheother.
AlltaxablepropertyisappraisedatitsmarketvalueasofJanuary1stunlessitqualifiesforaspecial
valuation (i.e. open space agricultural, timber, or wildlife management). Inventoryowners mayrequest to
havetheirpropertyvaluedasofSeptember1ifthetaxpayerfilesanapplicationbyJuly31.
The purpose of and intended use of the appraisal performed by the Freestone Central Appraisal
Districtistoestimatethemarketvalueforadvaloremtaxpurposesforthetaxingentitieslocatedwithinthe
boundariesofFCADasofJanuary1,2014,whichistheeffectivedateofthisappraisal.
FCAD'sgoalistoprovideprofessionalservicetothetaxpayingpublicandthetaxingentities. Thru
itsChiefAppraiser,thedistrictpromotesandadherestotheprofessionalstandardsandethicsas setforth
by:
 TheTexasDepartmentofLicensing(TDLR),
 ThePropertyTaxAssistanceDivisionoftheTexasStateComptroller'sOffice(PTAD),
 TheUniformStandardsofProfessionalPractices(USPAP),and
 TheInternationalAssociationofAssessingOfficers(IAAO).
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Area Analysis
The universe of properties appraised by the Freestone Central Appraisal District falls within the
physicalboundariesofFreestoneCounty’s873squaremiles.
ThecountyissituatedineastcentralTexaswithitsseatofFairfieldbeingsituatedapproximately90
milessouthofDallas,150milesnorthofHouston,and60mileseastofWaco.
Minerals including natural gas and lignite contribute most of the economic wealth to the county.
TXU Big Brown and NRG Texas both operate lignite-fired electrical generating plants in the area and two
lignite mines provide the fuel to these plants. Freestone Power Generation operates a gas fired electrical
generatingplantinthenortheastpartof thecounty. Numerous naturalgas productioncompanies operate
large gas compressor stations in various sections of the county. These companies also operate several
other smaller gas compressor sites and petroleum gas processing plants throughout the county. Many
“oil-field”relatedindustrieshaveestablishedbusinessesinthearea.
Primaryemployersincludethosecompaniesresponsiblefortheproductionoflignite,thegeneration
ofelectricity,theproductionofoilandgas,aswellaslocalgovernmentandtheschooldistricts.
Themajorityofthelandnotassociatedwiththeseindustriesisruralwithagriculturalproductionthe
main use, making farming/ranching a notable occupation in the county. (Source: Fairfield Industrial
DevelopmentCorp.)
Improvementsnotassociatedwiththeindustriescitedabovecangenerallybeclassifiedas:
 Singlefamilyresidences,
 Mobilehomes,
 Commercial buildingsandpersonalproperty,
 Industrialbuildingsandpersonalproperty,and
 Farm/ranchassociatedbuildings(sheds,barns,etc.).
Most areas of the county are un-zoned with the exception of areas where developers have
established minimum and maximum building type and size requirements. The City of Fairfield has
ordinances for the future placement of mobile homes relating to the quality and age of mobile homes
permittedwithinthecitylimits.
Thedistrict’stopographyismostlycomprisedoflowrollinghillsinthesouthandeasternportionof
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thecountyturningtomostlyflatlandinthenorthernandwesternpartsofthecounty. ThelandinFreestone
Countyislocatedinthreedominanteco-regions:
 TheBlacklandPrairieinthewesternsection,
 ThePostOakSavannahinthecentralsection,and
 TheEastTexasTimberlandsintheeasternsection.
The district is responsible for establishing and maintaining appraisal records for 249,458 real,
personal, mineral, and industrial property accounts within the district. This number is increased by 2,668
parcels abovethe 246,790parcels certified in 2014. The parcel increase is primarilydue to the inclusion
of additionalparcelscreatedbythesplittingofownershipofrealestateandproducinggasinterestsparcels.
Thetablebelowreflects the total market and taxable values for each jurisdiction within the district
asoftheMay20,2015.
Entity MarketValue TaxableValue ParcelCount
FreestoneCo 3,601,889,500 3,087,281,945 249,550
CityofFairfield 298,244,284 222,463,321 5,011
CityofStreetman 7,249,373 6,429,399 410
CityofTeague 141,702,105 113,226,826 10,291
CityofWortham 38,295,471 29,948,196 960
BuffaloISD 147,141,014 71,833,476 6,200
FairfieldISD 2,459,689,432 1,556,871,739 62,262
OakwoodISD 115,841,929 59,557,291 1,725
CorsicanaISD 11,451,838 7,000,796 47
DewISD 305,020,822 205,928,018 48,792
TeagueISD 1,334,506,883 968,817,311 149,447
WorthamISD 230,490,682 128,881,420 3,452
MexiaISD 2,717,248 2,233,732 13
FairfieldHospital 2,459,689,432 1,673,596,947 62,262
TeagueHospital 1,334,506,883 1,029,229,631 149,447
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