Hospital District Board Balks at Maverick County Appraisal District’s Certified 2015 Tax Roll
By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2015
The Maverick County Hospital District Board of Directors balked at the 2015-2016 Maverick County Appraisal District’s Certified Tax Roll presented at their July 28, 2015 meeting reflecting a decrease of over $100,000,00 ($100 Million) in Mineral Property (Oil & Gas) Tax Roll while Maverick County taxpayers have had their residential appraisals raised as high as 26 to 29 percent to offset the loss of the County’s overall tax roll, requesting that MCAD Chief Appraiser Maggie Duran and Board Chairperson Lupita Fuentes appear at a future meeting to explain this discrepancy.
The MCHD Board tabled the approval of the 2015 MCAD Certified Tax Roll until Duran and Fuentes appear before their Board to explain the significant decrease of Mineral Property Tax Roll by $100 Million.
MCHD Chief Executive Officer Terri Contreras presented the MCAD 2015 Certifed Tax Roll to the Board and stated “This letter shows that it is not complete as their some unresolved protest accounts.” A letter from Duran noted that there were still 23 protests pending to be resolved covering almost $900,000 of property values to be decided before a final 2015 Certified Tax Roll is finalized. Contreras noted that all the local governmental entities were invited to a meeting at the MCAD to advise them of the proposed 2015 Certified Tax Roll and the significant decrease of $100 Million of the Mineral Property Tax Roll for the county.
Contreras then explained the process that would be taken under those unresolved issues and that the MCAD would then notify the different entities of any changes.
MCHD Chief Financial Officer Nestor Bonilla stated that in comparison to last year’s tax roll, this year there is an increase of approximately $44,000,000 ($44 Million) in property values overall to be taxed.
“The only big difference as far as a change was in the mineral property. This year the mineral properties were valued at $155,591,548 and last year it was at $ 254,000,000 so we’re looking at a significant decrease as far as mineral properties are concerned,’ said Bonilla.
Board member Ricardo E. Calderon questioned the significant and material decrease of the Mineral Property Tax Roll by $100 Million while taxpayers residential values were increased as high as 26 to 29 percent.
“Why are the local taxpayers having to absorb a $100 Million difference with their residences seeing an increase and these mineral property owners, who are mainly oil and gas companies among the largest fortune 500 corporations, are getting an $100 Million decrease, while the taxpayers are getting a 26% to 29% increase in their residences’ appraised taxes? I can’t approve this,” said Calderon.
Board member Dr. Ronald Hixson concurred with Calderon and stated “I have a problem with it too. That’s crazy.”
“The taxpayers are getting hit to make up this $100 Million difference that our appraisal district granted to the mineral property owners. I have had some homeowners visit me and have showed me there new MCAD statements that have gone up by 26% to 29% from the previous year,” noted Calderon.
Calderon once again iterated that such high increase for the taxpayer was a bitter pill to swallow knowing that there had been a decrease granted on mineral property owners of over $100 Million.
“Just as a follow up to that, there was a workshop that the appraisal district had by their mineral property evaluators and when they came and presented that information they stated that the decrease from one year to the next was because a lot of the companies had shut down their operations. They didn’t close down the wells for the oil drilling and so forth, they just stopped drilling because of what was going on as far as drilling around the world,” said Contreras.
“That really had a dramatic impact on our valuations in Maverick County as far as mineral right properties. It also was reflected in surrounding counties that had a lot of drilling. They presented that workshop to warn us ahead of time.”added Contreras.
Contreras was referring to the decrease of the price of oil globally, thus bringing significant decreases of earnings to oil and gas drilling companies. The decrease on the price of oil per barrel also brought down the price of gas and other commodities as well, a decrease that did not sit well with the oil and gas industry.
“We have seen a substantial amount of growth here, in our community in businesses and commercial properties so that offsets the $100 Million because of the mineral properties that were decreased.” Said Contreras.
“That doesn’t make sense,’ said Board member Hixson.
“Well our community continues to grow and they do an assessment on the property values,” added Contreras.
“The demand for oil has increased. The demand for coal has increased and instead of it going up it goes down (mineral right property values). I don’t know how to challenge this but I think we have to ask what our options are,” said Hixson.
The MCHD Board of Trustees concurred that it be wise to have the Maverick County Appraisal District speak to the MCHD Board and give a more detailed presentation and reasons behind the increase of one and the decrease of the other.
“The way that it is, I think it’s highly unfavorable and unjust to the Maverick County taxpayers,” said Calderon.
Board member Juan Manuel Farias agreed with Calderon and Hixson for a presentation by Duran and Fuentes at a future meeting.
The issue begs the question whether taxpayers should also get a decrease on their residential appraised tax values just as the Mineral Property owners? Calderon noted that he has never seen a residential tax appraisal decrease after it has been increased.
