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Posted on 12/10/2006 8:00:14 AM PST by Dubya
WHARTON — Something doesn't smell right around here.
It's not just the nearby egg farm with its chickens that backs to Dick Watson's home.
It's the 30 percent hike in his property tax appraisal. Watson appealed the higher appraisal in June, arguing the increase was unjustified because of the pervasive stench from the farm.
The Wharton County Appraisal Review Board, upon hearing that his property backed to the egg farm, lowered his appraisal by 28 percent.
Eighteen other homeowners who live near enough to the farm to be affected by the smell got similar reductions after appealing to the ARB.
That's when things turned ugly. In August, the county's chief appraiser, Tylene Gamble, sued the homeowners, who've since dubbed themselves the "Wharton 19."
'Creep' of taxes "It's mind-boggling to exercise your right as a citizen and then have your government put a gun to your head," says Tom Johnson, whose wife is one of the defendants in the case.
The tax reform championed during the last legislative session by Gov. Rick Perry reduced the property tax income of rural counties like Wharton. At the same time, Perry and others have decried "appraisal creep," the rising appraisals that threaten to sop up any savings from the tax cuts.
The case of the Wharton 19, though, stands out because of the county's aggressive tactics in raising appraisals.
Under state law, homeowners may appeal an appraisal review board's ruling to the district court. Counties can too, although it's rare for them to sue homeowners. Typically, they resort to legal action only in commercial disputes, says Matt Larson, a tax attorney with Baker Botts in Dallas.
"You don't see it happen very often, " he says. "The whole point behind the ARB is to prevent these kinds of disputes from having to go to court."
Prices not affected? Gamble acknowledges that her tactic is unusual, and she says she hated to do it.
The problem, she says, is that the recent home sales show the smell from the egg farms hasn't affected market prices for homes.
"In our opinion, there was no market evidence to suggest that an adjustment was warranted," she says. In other words, Gamble and her superiors at the appraisal district felt the ARB's decision was wrong because the appraisals are in line with market prices. She says that left her little choice other than suing the homeowners. "That's the only way we have" to address it, she says.
Gamble argues that allowing the ARB's decision to stand would have created an inequity in the tax base by granting a lower value to 19 homeowners out of hundreds spread across an area of a half dozen square miles or so. To single them out as the only properties affected by the smell is unrealistic and unfair, she argues.
She stresses that the issue involves only the 2006 tax year. It's possible the odor could become a market factor in the future.
In the meantime, homeowners like Watson say they're being punished simply because they appealed.
Since Gamble filed suit, six homeowners have settled. The case against the remaining 13 is pending.
Officials with Maxim Production Co., which operates the farm, didn't return my phone calls. Everyone involved in the lawsuit, though, seems to agree that the farm produces an unpleasant odor.
"This is not a disagreement about whether it smells out there," Gamble says. "They do have odor. It smells."
The question is whether that odor is affecting home prices. Watson and other members of the Wharton 19 argue that it does.
If Gamble prevails, the ARB and the appeals process will be rendered moot, Johnson says.
Home marketability Johnson says arguing that the stench from chicken feces and the flies that come with it doesn't affect the marketability of a home defies common sense. Johnson, by the way, is a real estate agent, so he knows something about selling homes.
Watson, who moved here from San Antonio a year ago when he retired, says the odor from the farm grew worse with the warmer temperatures in the spring and summer. He re-insulated his house, trying to seal it from the outside air.
He and his wife considered moving back to San Antonio, but they like their neighbors and the small town life they've found in retirement.
Out of the question Besides, Watson says, selling the house is out of the question. Given the smell, "how many people are going to want to buy it?"
Johnson says he would gladly pay more in taxes if he didn't have to live with the farm's odor. If the county has its way, though, he and the rest of the Wharton 19 will get both the smell and the higher taxes.
That's what really stinks.
Loren Steffy is the Chronicle's business columnist. His commentary appears Sundays, Wednesdays and Fridays. Contact him at loren.steffy@chron.com. His blog is at http://blogs.chron.com/lorensteffy/.
We have just completed a community wide appraisal. _All_ who appealed were granted a reduction. How much padding is there in these appraisals to allow such easy reductions? Hardly fair.
either we are equal or we are not. Good people ought to be armed where they will, with wits and guns. Merry Christmas
Come to the D.C. suburbs where you'll pay $5000/year in property taxes for an average single family home. Once your mortgage is paid off you have to pay $450/month in taxes or the government takes your home.
Out of the question Besides, Watson says, selling the house is out of the question. Given the smell, "how many people are going to want to buy it?"
I remember when Ed Rendell was running for governor of Penna. in 2002. He claimed that he did not raise property taxes at all during his tenure as mayor. He was correct, of course, however, the city government simply kept reassessing peoples' houses to ridiculous amounts so that it would increase the total tax paid instead.
We need to get rid of property taxes , period. As someone else posted, we make 2 payments evey month. When all have to share the burden they won't be able to get away with this. I fought and won a property increase on my house. I wasted my time. The next year and every year after they just raised the land value.
It seems like this creature Gamble is abusing her position as a paid government employee by going against the judgement of elected officials.
"Come to the D.C. suburbs where you'll pay $5000/year in property taxes for an average single family home"
You don't have to go to D.C. My home is a single family home, middle class, fully paid off, in the Dallas area and they charge me about $475.00 per month in property tax. It just went up.
Just dropped off my property tax payment at the San Diego County Treasurer's office yesterday - $1,450 on my house with no reappraisal unless I sell or build an addition.
What a relief that I am not living in Taxus where the Taxans are victimized yearly by tax hungry politicians and tax collectors. Thank you, Howard Jarvis!
Got that straight from the appraisers mouth.
They are assessed by little small minded people hiding in inaccessible county offices all over our country. Try fighting against it.
But then that's just one man's opinion.
If some yuppy pays too much for the house next door, your taxes will go up.
Yeah, this is the typical dishonest politician-speak. The truth is that he won't raise your tax rate but will gladly double your taxes as the appraised value of your home goes up..
Not in California - your property assessment is fixed on purchase for as long as you own your home. Checkout www.hjta.org for more details.
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ASSESSMENT/ASSESSOR SCRAMBLES PROPERTY TAX ISSUE
Besides sour grapes, what are the homeowners being sued for? The difference in property tax between the original assessment and review assessment?
I think prop 13 allows for a maximum 2% increase a year based on the county property value appreciation. Property taxes continue to increase here in California.
If the market shows there is no decrease in sales prices due to the smell, then the home owners in fact have no case to make.
True - but I don't consider that a reappraisal. If my property were reappraised, I likely would be paying $6,000 per year and so would most other San Diego homeowners. According to the recent news, the average house in SoCal is worth $615,000 x 1% equals $6,150 less $70 homeowners exemption or $6,080 in property tax if reassessment were allowed. Savings due to the Prop 13 reassessment restriction, approximately $4,500 per year.
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