HOUSTON, Dec. 17, 2014 /PRNewswire/ -- Today, the Texas Building Owners and Managers Association (BOMA) launched "Taxed Out of Town", a statewide initiative advocating for Texas property appraisal reform. Unpredictable and uncontrolled valuation increases have placed significant financial burdens on Texas businesses, forcing some to move outside of city limits to avoid erratic appraisals.
"This issue affects everyone, not just commercial real estate. Commercial property taxes are paid by the businesses that lease space in Texas," said Tammy Betancourt, Executive Vice President and COO of Houston BOMA. "Higher commercial property taxes lead to increased operating costs for Texas business owners, rents for tenants, and costs for goods and services."
In some areas of Houston, property valuations have increased more than 100 percent in the last two years. In 2013, commercial property valuations across the Bayou City increased 53 percent on average, then another 18 percent in 2014. Similar double-digit increases have occurred in other Texas cities and counties, without proportionate reductions in tax rates.
Statewide property valuations have not only risen sharply, but erratically. The Texas Constitution requires equal and uniform taxation for all, but commercial property valuations have proved to be inconsistent and lacking in a standard formula, with similar properties in the same neighborhood receiving varying appraisals. As a result, it's difficult for Texas small businesses to accurately plan for the future.
"Texas takes pride in being pro-business, but the current property appraisal process is anything but. If runaway increases in commercial property valuations are allowed to continue to burden Texas' businesses, the end result will be stalled local growth, decreased job creation, and local businesses and investors looking elsewhere to do business," warns Betancourt.
Texas property appraisal reform and tax relief are expected to be key issues in the 84th Legislature. Texans can count on Taxed Out of Town to work actively with legislators to identify property appraisal solutions that will improve the process and keep businesses growing.
"Our great state's continued economic growth and prosperity means little if our local businesses cannot afford to grow along with it," concludes Betancourt. "Texans deserve meaningful property appraisal reform."
Taxed Out of Town urges Texans to contact their state legislator now and demand action for fair and uniform property appraisal reform. For more information or to contact your legislator, go to www.TaxedOutOfTown.org.
About the Texas Building Owners and Managers Association
Texas Building Owners and Managers Association (Texas BOMA) represents the interest of owners and commercial real estate in the state of Texas and is a federated organization of BOMA International, the industry leader in promoting energy efficiency and sustainability initiatives such as Green Lease.
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SOURCE Building Owners and Managers Association (BOMA)