State Candidate Questionnaire

On behalf of more than 150,000 Texas REALTORS®, we commend you for seeking office and appreciate you taking time to complete this questionnaire.

The purpose of the questionnaire is to establish an issue-based dialog between you and your local REALTOR® association.

Your responses to the questionnaire will not be made public, nor are they a litmus test for campaign support.

Texas REALTORS® appreciates your attention to the candidate interview and is available to answer any questions. Contact your local REALTOR® association or the Texas REALTORS® Governmental Affairs Department at 800-873-9155.

Candidate information

Issue: Property Rights

Background

Cities and counties have made many attempts to obtain more regulatory authority over the permitting of commercial and residential development. Most cities maintain a reasonable permitting process and reasonable development laws. However, some municipalities have a separate agenda—whether it is to limit growth, protect the environment, or inhibit the activities of specific private-sector developers. As a result, the Legislature has implemented laws designed to minimize abuses by local governments.

Counties don’t have as much regulatory authority over development as cities. However, some counties would like to obtain more authority to control development in unincorporated areas. Texas REALTORS® will closely monitor any attempt by counties or cities to obtain regulatory authority that may infringe on private-property rights.

County Rulemaking Authority 

Current state law gives county government limited and specific regulatory authority over commercial and residential land development. Any additional county regulatory powers must be specifically granted by the Texas Legislature. In recent years, explosive growth in many counties has resulted in numerous requests for additional county rulemaking authority, which the Legislature has been reluctant to grant.

Issue: Eminent Domain

Background

For years, Texas has had ambiguous eminent domain laws that many believe are at odds with the state’s philosophical support of private property rights. The 87th Texas Legislature (2021) saw the overwhelming passage of House Bill 2730, which makes several changes to ensure the eminent domain process is fairer and that property owners are more aware of their rights when an entity with eminent domain authority seeks to acquire their property. Additionally, this legislation increases transparency by requiring an initial offer to include more information, including the Landowner’s Bill of Rights, a property appraisal that includes the remainder of the property not being condemned, and a list of negotiable terms. 

But even with these pro-private property rights changes, many believe there is still more to be done for property owners.

Issue: Tax on Professional Services

Background

As long as policymakers look for ways to restructure the tax system, Texas REALTORS® will actively participate in the discussion to ensure the buyers, sellers, and owners of real estate—and real estate professionals—have representation. Texas REALTORS® is committed to working with the Texas Legislature to create a tax policy that is just and fair to all Texans.

During previous legislative sessions, there have been various proposals advocating new taxes. These taxes range from a state income tax, expansion of the sales-tax base, additional taxes on business, and “sin” taxes, among others. Texas REALTORS® has actively worked with the Texas Legislature to oppose a tax on professional real estate services and a tax on the transfer of real property. At the same time, Texas REALTORS® supported efforts to reduce property taxes for homeowners, which would make homeownership more affordable.

Issue: Property Taxes and the Appraisal Process

Background

Generally, a taxpayer’s concern with any taxing system is rooted in the belief that the person or entity is paying a disproportionate share of a tax. This is true under any taxing structure: income, property, sales, or franchise.

When it comes to property taxes, specifically, the property appraisal process is one of the elements that determine tax liability for real property. However, the appraisal process and local taxing jurisdictions’ budget processes have become increasingly convoluted and difficult to understand.

As a result, many commercial and residential property owners believe the appraisal and protest processes are not transparent, fair, or uniform across central appraisal districts (CADs).

Many property owners also believe CADs either work for, or are in cahoots with, local taxing jurisdictions. There are also some chief appraisers who believe it is their job to assist the taxing entities with raising revenue.

The 86th Texas Legislature passed “The Texas Property Tax Reform and Transparency Act,” which implements several transparency measures for taxpayers. 

In recent sessions, legislators have filed bills that would lower the current 10% appraisal increase cap on homestead properties to an arbitrary number, such as 2%, 3%, or 5% or extend the cap on homestead properties to non-homestead residential, commercial, and industrial property, as means to address property tax reform. 

Issue: Rollback (Lookback) Taxes for Land Use Change

Background

State law allows for an Agriculture Special Valuation (often referred to an ag exemption) on certain lands, which can lower the property’s tax liability. The tax savings a property owner receives depends on the current market value of the property and the type of Ag Valuation the landowner holds.

However, the law also enables local governments to collect substantial “rollback” taxes on agriculture land when the owner stops using it for agriculture. This penalty is commonly called a rollback (or lookback) tax because it recaptures the taxes the owner would have paid had the property been taxed at full market value in previous years.

A law passed by the 86th Texas Legislature (2019) reduces the lookback period from five to three years and reduces the interest from 7% to 5%.

Further, a law passed by the 87th Texas Legislature (2021) eliminated additional interest charges on those assessed lookback taxes.

State law allows local governments to collect a “rollback” tax on agriculture land when the owner stops using it for agriculture as a disincentive for taking the land out of agricultural production.

Issue: Public School Finance System

Background

The 86th Texas Legislature (2019) passed a comprehensive reform of the state’s public school finance system and property tax system to lower the burden on local property taxpayers while increasing the state’s investment in educators and students.

One of the most impactful changes is the lowering of school property tax rates statewide. 

Issue: Infrastructure Overview

Background

The first five words of the Preamble to the REALTOR® Code of Ethics are, “Under all is the Land.” Texas REALTORS® legislative agenda extends beyond traditional “real estate” issues to include a focus on the state’s business climate and long-term needs.

Water – Since the passage of Proposition 6 in 2013, a ballot measure that created a long-term fund for water and water infrastructure projects, Texas REALTORS®’ water policy has focused on removing statutory and regulatory barriers to implementation of the nationally renowned Texas Water Plan.

Transportation – As a general philosophy, Texas REALTORS® believes in a comprehensive approach to transportation funding, including modernizing the fuel tax and vehicle registration fees, tolled roadways, utilization of mass transit, and flexible work options (work from home and incentivizing flex scheduling for businesses).

In 2014, Texas voters approved Proposition 1, a measure designed to take advantage of the state’s oil and natural gas boom by providing a portion of the oil and gas severance tax to the State Highway Fund(Fund 6). In 2019, lawmakers extended those provisions to ensure no interruption of funding for another 10 years.

And in 2015, voters approved Proposition 7, a referendum that, among other things, dedicated $2.5 billion of existing sales tax revenue to the credit of the State Highway Fund for the maintenance, construction, and expansion of non-tolled roadways.

Energy – Winter Storm Uri (2021) uncovered significant shortcomings with the Texas energy grid. Texans need adequate, reliable, and reasonably priced energy. This includes businesses, which are competing in a global marketplace.

Texas REALTORS® believes infrastructure is a core service of government. Over the past decade, the association has expanded its legislative focus to include the state’s infrastructure, including water, transportation, energy, broadband access, and public education. As businesses seek to relocate to or expand in Texas, it’s critical that the state’s infrastructure has the capacity to accommodate them and their employees.

Issue: Windstorm Insurance

Background

In order to secure mortgages, borrowers must have adequate insurance. Since private insurance providers will not write windstorm policies along the Texas coast, the viability of this key sector of the real estate market is in jeopardy.

Furthermore, the Gulf Coast is a vital component of the Texas economy. Any coastal catastrophe caused by acts of nature would have a devastating effect on the fiscal stability and viability of the entire state.

The Texas Windstorm Insurance Association (TWIA) is a quasi-governmental state agency that serves as the insurer of last resort for wind and hail damage for property owners in 14 Gulf Coast counties.

Despite the passage of SB 900 in the 84th Texas Legislature, which provided some positive reforms, TWIA is not actuarially sound and current state law does not provide any backstop on these policies. That means that when a catastrophic storm comes, the state would face a large surcharge to pay for the damages that exceed the state’s capacity to pay.

Issue: Homeowners' Associations

Background

An estimated 6 million Texans live in communities governed by property owners’ associations (POAs). That number will only increase as new communities are built around the state to meet the needs of our growing population. Due to municipal regulations and buyer preferences, property owners’ associations are often necessary to create new housing communities. POAs can enhance neighborhoods, provide amenities, and protect property values.

Increasingly, homeowners’ associations (HOAs) are taking on functions local governments traditionally provide and wield significant power over residents, including, but not limited to, aesthetic regulations, tenant limitations, credit reporting, and foreclosure authority—yet they remain unregulated by any state entity.

The 87th Texas Legislature (2021) overwhelmingly passed Senate Bill 1588, which expands and clarifies property owners’ rights, reins in some costs, and ensures Texans have access to information they need to successfully to buy, sell, and live in managed communities.

Texas REALTORS® believes it is appropriate for the Legislature to ensure that this power is executed with care. Regardless of private management structure, property owners deserve certain rights, and they deserve to understand their rights and obligations when those are limited by their membership in a property owners’ association and to have adequate methods to address disputes.

Foreclosure authority and priority

Homeowners’ associations currently have the ability to initiate foreclosure proceedings to collect past-due assessments and fines, meaning the association can repossess a home if the owner is delinquent in their assessments or other debts. Further, POA debts often assume a “priority” status, meaning they must be the first to be repaid when a property is foreclosed upon—even above the mortgage lender.