Maverick County Citizens Shocked by High Property Ad Valorem Tax Appraisals by Maverick County Appraisal District

By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2016

As City of Eagle Pass, Texas Mayor and City Council and other civic leaders were campaigning against the City’s Fire Fighters and Police Officers collective bargaining rights referendum election on the grounds that passage of collective bargaining would significantly increase ad valorem property taxes to taxpayers, the Maverick County Appraisal District issued its 2016 ad valorem tax appraisal notices to Maverick County real and personal property owners with increased appraised values of between 10% to 30% without the benefit of collective bargaining, shocking the conscience and senses of Maverick County taxpayers.

One City of Eagle Pass taxpayer noted that his real property appraised value was stupendously increased from $60,000 to $90,000, a whopping 66% increase in appraised value which will cause a significant tax increase. This taxpayer, who requested anonymity, stated “The Maverick County Appraisal District has lost its mind and any sense of reality, including the extreme poverty rates, high unemployment and underemployment rates, and lack of economic development in Maverick County.” Maverick County is not San Antonio, Austin, Houston, or Dallas-Fort Worth who are experiencing economic development booms. “All of the local governmental entities which comprise the Maverick County Appraisal District need to bring it down to earth, or, otherwise, taxpayers will have to revolt against their own governments,” added the taxpayer. “The fact of the matter is that our local governmental entities need to learn to live within our community’s means and make reductions to their budgets,” said the taxpayer.

Another taxpayer, who also requested anonymity for fear of retaliation, stated that “local governmental entities always raise the ad valorem property taxes to the already artificially inflated Maverick County Appraisal District’s appraised values, causing a double tax whammy to local taxpayers. People need to protest their proposed tax appraised values with the Maverick County Appraisal District by no later than 30 days upon receiving them or no later than May 30, 2016.

“On an yearly basis they find a way to really hand it to us. All the symptoms of an ill ridden community are in place but yet they are not reflected in our taxes,” said one taxpayer.

Many local taxpayers have expressed their discontent and even anger at the exorbitant tax appraisal notices issued by the Maverick County Appraisal District.

Another taxpayer stated that, “it is totally unfair for the Eagle Pass City Council to grant tax abatements to new businesses coming to town for up to 10 years, but not provide the same tax abatement relief to local residential property owners.”

The Eagle Pass Business Journal attempted to interview Maggie Mata Duran, Chief Appraiser for Maverick County Appraisal District for this article, but she was unavailable.

During 2009 to 2014, the Maverick County Appraisal District used the Eagle Ford Shale economic oil and gas boom to justify their exceedingly high property tax appraisals. Now they are using the same Eagle Ford Shale and the decrease of the oil and gas boom to justify why they are once again increasing the appraisal values in order to offset the decline of the oil and gas property appraisal values. It’s a Catch-22 situation.

Last year, the 2015-2016 Maverick County Appraisal District’s Certified Tax Roll reflected a decrease of over $100,000,000 ($100 Million) in Mineral Property (Oil & Gas) Tax Roll Appraised Value while Maverick County residential taxpayers had their appraisals raised as high as 26% to 30% percent to offset the loss of the County’s overall tax roll.

Today, the Maverick County Appraisal District 2016 re-appraisal plan for oil and gas reserves and mineral property appraised values is based on a study by Ricardo Guzaman of the Thos Y. Pickett & Company Inc., professional appraisers, finding that 84 % of the total mineral rights values in Maverick County are due to oil and gas rights. The report further states that in 2016 the average appraisal price of oil decreased by at least 32% and that there will be a lack of new oil and gas production in the near future, forcing the shutting down of existing producing oil and gas wells. The Study also states that it is believed that there will be limited investments to maintain current oil and gas production in Maverick County. The study concludes that mineral appraisal value changes for 2016 in Maverick County is estimated to be 55 % to 65 % lower than the 2015 certified value.

During 2015, the mineral properties were valued at $155,591,548 compared to $254,000,000 in 2014 during the oil and gas boom days, a significant decrease as far as mineral properties are concerned. The study estimates the 2016 mineral properties values may decrease to $54,457,04, a negative 78.5 % decrease in mineral rights property values in a span of 2 years from 2014 to 2016 in Maverick County.

The question is who makes up for that loss in mineral rights property tax appraisal value and shortfall of tax revenues from this devaluation to mineral rights and the funds that local governmental entities will be short on?   You do, the taxpayer.

Former Maverick County Chief Appraiser Victor Perry in 2013 stated that the Eagle Ford Shale oil and gas boom was positively increasing the real estate values in Maverick County and those type of things are then used in the property valuation determination.

So, if there is no oil and gas activity in Maverick County in 2016, then wouldn’t that lower the local residential property owners tax appraisal valuations? You would think so, but the answer is NO. Someone has to pay to make up for the mineral rights property tax appraisal value shortfall in Maverick County.

All Maverick County residential and business taxpayers who disagree with the exceedingly high property tax appraisals for 2016 of your property are encouraged to file a Notice of Protest with the Maverick County Appraisal District within 30 days after receiving the notices or by no later than May 30, 2016, otherwise, you will get stuck with the ridiculously high appraised values of your property.

All property owners should go to the Maverick County Appraisal District to discuss their ad valorem property tax appraisals. Appraisers do not go inside homes and sometimes there are certain conditions that they are unaware about such as a cracked foundation or incorrect size or age of the property. If the property owner reaches an agreement with the appraisal district, then the appraised value is settled and no hearing is needed. However, if the real property owner does not reach an agreement with the appraisal district, then the property owner may file an appeal and request a public hearing before the Maverick County Appraisal District Board of Directors.

For more information, please contact the Maverick County Appraisal District, located at 2243 N. Veterans Blvd., Eagle Pass, Texas or call them at (830) 773-0255.