Run Amuck – by Paul Pennington, published March 2023 by Institute for Professionals in Taxation. The article in the March 2023 IPT Insider detailed the action taken by Travis Central Appraisal District (TCAD) in 2019 to force all taxpayer protests to the Appraisal Review Board. Click here to read article
Louisiana Tax Commission – Statewide Advisory – Property Damaged by Hurricane Laura Click here to read the Louisiana Tax Commissions Statewide Advisory regarding property damaged by Hurricane Marco and/or Hurricane Laura.
Amreit SSPF Preston Towne Crossing LP v. Collin Cent. Appraisal Dist. (Tex. App. 2020) Click Here to read the Court of Appeals Opinion on Amreit SSPF Preston Towne Crossing LP v. Collin Cent. Appraisal Dist. (Tex. App. 2020).
Update on Covid-19 and 2020 Valuations We at PEPCO wanted to give you an update on the Covid-19 crisis and its potential effect on 2020 property tax valuations. On March 13, 2020 Governor Abbott declared a state of disaster as it relates to Covid-19. Some discussions then took place regarding Covid-19 and the effect the…
Attorney General Opinion on Application for Temporary Tax Exemption Under Section 11.35(g) of the Texas Tax Code Click Here to read the Attorney General of Texas’ Opinion.
Collin CAD Extension of 2020 Filing Deadlines – Press Release March 30, 2020
Collin Central Appraisal District Office Closure to Public Access – March 22, 2020
COVID-19 Triggers Property Tax Administrative Issues: ARBs, etc. Date Sent: March 18, 2020 COVID-19 Triggers Property Tax Administrative Issues: ARBs, etc. COVID-19 creates extraordinary issues this appraisal cycle. While most appraisal districts are either finished or near-finished with crafting preliminary values for 2020 (with the exception of Travis CAD, which is not reappraising single family…
Is There Something in the Water in Austin? Article by Paul Pennington & James Harris Click Here to read the article published in the IPT Insider by Paul Pennington and James Harris.
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Denton CAD Board of Directors Meeting on December 12, 2019 December 12, 2019 Denton Board of Directors I would like to thank you for the opportunity to address you today. My name is Paul Pennington. I have attached my bio for your review. It shows that I have been a property tax consultant…
Summary of Senate Bill 2 (Texas) Paul Pennington Addressing the Senate Committee on Property Tax Capping the growth of tax rates for counties and cities from 8% to 3.5% with voter approval (smaller counties are exempted). School district tax rates are capped at 2.5%, again if it is exceeded voter approval is required. Creation of…
James Harris, Paul Pennington and David Kaplan after leading discussion on legislation and property tax policies. IPT Conference, Seattle, WA
CFAR to attend IPT Property Tax Symposium on Nov. 10-12, Seattle, WA
IPT Property Tax Symposium on Nov. 10-13, Seattle, WA I’m extremely honored to be invited to speak at the IPT Property Tax Symposium on Nov. 10-13, Seattle, WA to discuss the CFAR efforts in the 2017 and 2019 legislative Session.
Paul Pennington participating in career day at Indian Creek Elementary School.
Paul Pennington Speaking at the Senate Property Tax Committee Paul Pennington was in Austin at the Senate Property Tax Committee speaking as an invited speaker by Senator Nelson on SB 67 (an ARB and Arbitration Reform bill).
Paul Pennington at the House Ways & Means Committee Paul Pennington at the House Ways & Means Committee on March 13, 2019, speaking on behalf of bill HB 2179 (removal of an ARB member for bias or misconduct).
Dallas Area IPT Luncheon Here are some pictures from the Dallas Area IPT Luncheon Group where Paul Pennington spoke on Legislation and Appraisal Reform.
Attending TTARA Preview of the 2019 Legislative Update
CFAR Fundraiser with Representative John Wray as guest speaker
Executive Luncheon with Representative John Wray
TTARA Annual Meeting It was my pleasure to attend the Texas Taxpayers and Research Association Annual meeting last week in Austin. Far left Galt Graydon; The Graydon Group, Third from the right John Kennedy: Senior Analysis TTARA, State Senator Paul Bettencourt and myself Representing Citizen For Appraisal Reform. All of these people are committed to…
Yet another trip to Austin working on property tax reform.
Paul Pennington speaking at the Bowling Summit 2018, Phoenix, AZ “Battling Sky Rocketing Property Taxes.” To view the presentation, click here.
Paul Pennington attends TDLR Property Tax Advisory Council meeting, November 1, 2017, Austin, TX
Paul Pennington discussing property tax reform at Texas Southern University in Houston, TX
The Property (Over) Tax Problem The Property (Over) Tax Problem “And What Happens at the Capitol” Click for the entire article
Update on the Legislative Effort on the Citizens for Appraisal Reform (CFAR) Re: Update on the Legislative Effort of the Citizens for Appraisal Reform (CFAR) With your support, we created CFAR in the Fall of 2016. Our goal was to enhance the administrative appeal process for taxpayers. Working with Senator Jane Nelson and her…
2017 Legislative Update Click Here to read 2017 Legislative Updates
Reappraisal of Property Damaged in Disaster Area – Section 23.02 Sec. 23.02. Reappraisal of Property Damaged in Disaster Area. (a) The governing body of a taxing unit that is located partly or entirely inside an area declared to be a disaster area by the governor may authorize reappraisal of all property damaged in the disaster…
Paul Pennington re-appointed to TDLR’s Property Tax Consultants Advisory Council
Property Taxpayer Advocates Rahul Patel, Paul Pennington and James Harris in Austin testifying in favor of SB 669, Senator Nelson’s ARB and Arbitration reform Bill.
Senator Jane Nelson Files Appraisal Reform Bill Click Here
P.E. Pennington & Company Increase in Client Base by Major Texas County 2015-2016 Click Here
Dallas Estimate of Anticipated Growth of its Property Tax Base Click Here
Senate Select Committee for Property Tax Reform & Relief Click Here
P.E. Pennington & Company 2015 Tax Savings for Major Texas Counties Click Here
PE Pennington & Company, Inc. Co-Sponsor Reception for Senator Paul Bettencourt, District 7 Texas Click Here
Keep Austin Weird- by Paul Pennington for IPT Dec. 2015 The article in the September IPT Insider detailed the action take by The City of Austin (the City) which challenged the Travis Central Appraisal District’s (TCAD) 2015 tax roll. Click here to read article
A Texas Challenge The City of Austin has found a way to incorporate the slogan “keep Austin weird” into Travis County’s property tax system by challenging the 2015 commercial tax roll. Specifically, the City challenged Travis County Appraisal District’s (TCAD) valuations for the categories of F1 Commercial Real Properties (office, retail and industrial) and C1…
State Bill 849, Allowing more owners to take protests to arbitration. S.B. 849 will allow more property owners to take their property tax protests to binding arbitration by qualifying more properties for arbitration and increasing the deposits and fees paid to arbitrators commensurate with the value of the property protested. See full article
Property Tax Savings by County – 2014 2014 Property Tax Savings by county. Click here to view
This is custom heading element Summary of San Antonio Court of Appeals Decision in Bexar Appraisal District vs. Sivage et.al. CLICK HERE to read document
Bexar Appraisal District v. Sivage Investments, Ltd. et. al. To: Owners and Those Representing Owners of Developable Texas Agricultural Use Land Re: San Antonio Fourth Court of Appeals ruling in Bexar Appraisal District v. Sivage Investments, Ltd. et. al., (Case No’s Nos. 04-14-00227-CV, 04-14-00228-CV, 04-14-00229-CV and 04-14-00230-CV (consolidated for appeal) CLICK HERE to read document
Property Tax Savings by County -2013 2013 Property Tax Savings by county. Click here to view
Model Hearing Information & Procedures for Appraisal Review Boards Model Hearing Information & Procedures for Appraisal Review Boards Information Procedures
2013 Property Value Studies – Harris & Tarrant Counties Property Value Studies for Harris County & Tarrant County
Attorney General Opinion – dated 01/31/2014 This is a link to the document from Attorney General Greg Abbott to The Honorable Ryan Guillen Chair, Committee on Culture, Recreation & Tourism Texas House of Representatives. Document
GOP comptroller candidates want to end property tax. This is an article from Killeen Daily Herald. GOP Comptroller Candidates
The Tax Man Cometh – and he wants more of your money. This is a link to the article in the San Antonio Express The Tax Man Cometh
2013 Appraisal Review Board Manual Click this link to view the 2013 Appraisal Review Board Manual. ARB Manual
A Case for Equity within the Texas Property Tax System Preface: Similar properties should be valued similarly to ensure equal treatment among taxpayers. In essence, so long as a taxpayer may rely on an equal and uniform argument, the taxpayer is able to address and minimize any possible unfair treatment against their property by an…
Highlights of 2013 Texas Legislation Session • The Comptroller’s Office will strengthen Appraisal Review Board (ARB) training with curriculum materials and requirements. • The Comptroller’s Office will create and distribute model hearing procedures to ensure fair hearings for Texas taxpayers. • Changes have been made to the Texas Property Tax Code to assist taxpayers in…
Who Pays Taxes in Texas Who Pays Taxes in Texas by Chandra Villanueva and Dick Lavine, Published by the Center for Public Policy Priorities.
2013 State Business Tax Climate Index The 2013 State Business Tax Climate Index
Dallas 2ND Annual Student Housing Summit Dallas 2ND Annual Student Housing Summit
Unequal Appraisal In many states including Texas, if a property trades, the purchase price becomes the new assessment. Clearly this is not fair or equitable because properties which did not sell remain unchanged or are not raised to the level of the property which sold. A property tax appeal was filed calming unequal appraisal in…
Proposed Legislation Likely to Pass In 2013 The Texas Apartment Association (TAA) has announced publicly, and have discussed in hearings, their intention to strengthen Section 23.01(e) of the Texas Property Tax Code (The Code). Originally passed by the Texas Legislature in 2009, this law was intended to prevent appraisal districts from revaluating properties if the…
Property taxes in Texas up nearly 200 percent over the past two decades, comptroller says The state’s chief accountant said Wednesday that property taxes across Texas rose 188 percent between 1992 and 2010, with local sales taxes growing almost as fast. In a report called “Your Money and the Taxing Facts,” Comptroller Susan Combs says…
Important Property Tax Deadlines are Approaching Business personal property renditions are due on or before April 15th. Late filing or no filing penalties are 10% of the annual taxes. Extensions are available if addressed in writing. Contact your local appraisal district or the Texas Comptroller’s office for further details. April 30th is the deadline to…
Foreign Trade Zone Appeal The Texas Property Tax code is clear on that a property is located in a Foreign Trade Zone (FTZ) is exempt from property taxation. We had an appeal in late 2011 in which the taxpayer was able to obtain a FTZ status in late 2010 through application process with a federal…
How to calculate the 1/3 over-assessed qualification in a 25.25(d) Hearing. How to calculate the 1/3 over-assessed qualification in a 25.25(d) Hearing. There are two methodologies that allow you to judge whether a value meets the 1/3 over-assessed rule: 1) Using the Current Assessed Value: Calculation: **Current Assessed Value X 75% = Threshold for Corrected…
Texas Property Forecast for Tax Year 2012 On a macro basis today we see the European crisis worsening and to add insult to injury news is arriving that a slowdown in China might be occurring. The conventional thinking is that a worldwide recession could be brewing. However at this particular moment in time we see…
Estimating Tax Future Property Tax Liabilities There are four things to consider in projecting tax liabilities for future years. 1. Estimate the timing of future revaluations and appeals. 2. Projected increases in future tax rates. 3. Legislative changes. 4. National Economy. It is very important to forecast county reappraisals due to up-ticks in sales activity,…
How to prepare for a hearing before the Appraisal Review Board. The First most important step is to make sure that you have filed a timely appeal with the appeal district. With an appeal on file most appraisal districts will give you the opportunity meet informally with a staff appraiser to discuss the current valuation.…
Filing a Texas Property Tax Protest. First of all, a taxpayer should understand the nature of property taxes in Texas. Property taxes are the primary financial resource for the operation of governmental entities in Texas. This is largely based on the fact that Texas has no state income tax. Annual valuations are determined by local…
Property Tax Basics for Building Owners Property Tax Basics for Building Owners – as seen in The Commerical Real Estate Network.
Property Tax Basics Which Office Owners Should Know Office owners and managers should know that in Texas the second largest operating expense after debt service are property taxes. Additionally, since the majority of property taxes are generally passed through to the tenant it is extremely important to control them in today’s competitive market. Texas tax…
Texas Appraisal Caps Bad Public Policy A Bill has been introduced this session (S.B. No. 474) which seems to be modeled after California’s Proposition 13 passed in the late 70’s. Some hope to pass a provision which would limit the amount that a valuation can be increased to no more than 10% each year on commercial and…
P.E. Pennington Appraises the Appraisers – as seen in D Magazine. P.E. Pennington Appraises the Appraisers – as seen in D Magazine.>
2009 Dallas County Property Tax Reductions P.E. Pennington & Company, Inc. announced today that in tax year 2009 they represented $1,548,551,710 in commercial real estate value in Dallas County. During the 2009 Administrative Remedy these valuations were reduced to $1,325,990,460 or 14.37% in adjusted valuations. These figures do not take into consideration further reductions achieved through…
Filing a Texas Property Tax Protest First of all, a taxpayer should understand the nature of property taxes in Texas. Property taxes are the primary financial resource for the operation of governmental entities in Texas. This is largely based on the fact that Texas has no state income tax. Annual valuations are determined by local…
More indications of loss of Texas property tax value in 2010. The Dallas Morning News reported that the number of DFW foreclosures was up in 2009. Apartments up 16% Office up 121% Retail up 90% Industrial up 10% Land up 71% This is yet more evidence that 2010 Texas property tax values will be down…
2010 Texas Property Tax Valuations The current commercial real estate crisis has not developed into an “S&L” melt down simply because federal regulators have decided not to push lenders to foreclose on assets which have lost tremendous amounts of value. The thinking by The Feds is to push lenders to extend loans and pray that…
Outlook For Commercial Real Esate Values Getting Worse Oct. 30 (Bloomberg) — Billionaire investor Wilbur L. Ross Jr., said today the U.S. is in the beginning of a huge crash in commercial real estate. All of the components of real estate value are going in the wrong direction simultaneously, said Ross, one of nine money…
2009 Texas Property Tax Legislative Hghlights House Bill 8: Ratio studies conducted by the Comptroller’s Office will be administered biennially. Previously these studies were conducted annually. House Bill 986: The deadline for filing suit with the appraisal district has been extended from 45 days 60 days after receipt of the order determining protest. House Bill…
Texas Property Tax Rolls (From Bad to Worse) Soon 2009 Texas property tax rolls will be certified by appraisal districts. The tax rolls will then be presented to the counties, cities and schools to develope 2009 /2010 budgets. The bad news for local jurisdictions will be shrinking tax rolls which will create pressure to raise…
Should cap rates be lowered by the Louisiana Tax Commision on tax credit apartments part two? Dear Commissioners: Please accept this letter as my rebuttal of testimony present by the Louisiana Assessors Association (LAA) on or about February 12, 2009. I would like to restate that facts noted in my first letter (Exhibit…
2009 Texas Property Tax Appeals Most economists tell us that the economy will continue to deteriorate in 2009. Some say that we have a one in five chance of entering a depression. Warren Buffett tells us the economy has fallen off a cliff. During these challenging times Texas appraisal districts will be under pressure to…
The Role Of property Tax Consultants In Litigation In the event that a valuation settlement cannot be reached during the administrative remedy, the property owner and/or manager often ask for recommendations regarding possible litigation from their property tax consultant. Since litigation support is a large practice area in the property tax consultant industry, consultants play…
Dallas commercial real estate sales continue to decline 2008 Dallas County commercial property sales Number of Sales Change from 2007 Industrial Buildings 338 -24% Misc. Buildings Sales 309 -24% Land Sales 391 -28% Total Sales 1434 -32% Office Buildings 138 -34% Retail Buildings 153 -40% Apartment Buildings 105 -58% Foreclosures 78 -56% Source: Roddy…
Foreclosures rise in DFW FORECLOSURE POSTING of COMMERCIAL REAL ESTATEAnnual ComparisonDALLAS/FOR WORTH METROPLEXThe Commercial Real Estate Network Name of County 2007 2008Â % Change from Last Year DALLAS COUNTY 606 800 32% TARRANT COUNTY 700 852 22% COLLIN COUNTY 78 134 72% DENTON COUNTY 74 132 78% TOTAL COMMERCIALPOSTINGS 1458 1918 32% Â Â Â 2007…
Forecast of 2009 Shrinking Tax Rolls National Real Estate Investor reported “…The faltering economy, credit crunch and the net loss of 1.2 million jobs this year will weigh on consumers to make this holiday shopping season one of the weakest many retailers can remember, Duffy predicts. “Looking ahead to 2009, it’s highly unlikely conditions will…
Foreclosures; the beginning of shrinking property tax rolls Year to Date 2007 Year to Date 2008 % Change % of Total Commercial Postings Apartment Communities 222 321 45% 18% Office Buildings 88 108 23% 6% Retail Centers/Buildings 99 121 22% 7% Industrial Buildings 103 139 35% 8% Land 179 281 57% 16% Miscellaneous Buildings 602…
Texas commercial real estate and property tax rolls In an August 17, 2007 Dallas Business Journal article, Dallas developer Craig Hall said, “it’s over,” he said of Dallas-Fort Worth’s recent property boom. “It’s gone. It’s done. “It won’t be a temporary thing,” he continued. “It’s a permanent change in the pricing of real estate. It’s…
Recession and Texas Property Taxes I have written a lot about the economy and its effect on property taxes.  The actions today by the federal government to bail out financial institutions, I believe is a clear message both nationally and here in Texas.  For example Bloomberg reported, “Lehman Brothers Holdings Inc.’s bankruptcy filing may delay the sale…
Texas school districts seek higher property tax rates The Dallas Morning News reported today that more than 100 school districts will seek voter approval to raise their 2008 tax rates. The school districts claim they need voter approval for rate increases over and above those provided by the legislature in the last session. Districts claim they…
The Texas Property Tax Revolt Needs Education I have seen several Texas State Representatives recently on YouTube. Their premise is abolishing all school property taxes and replacing them with an increased sales tax. In watching Representative Phil King on YouTube he gives an example of buying a house for $100,000.00 and suffering average valuation increases…
Texas appraisal districts, local governments, the Comptroller’s Office and the media by their actions keeps fueling the fire for the demand for change by the legislature and taxpayers. Many issues created the environment we Texans now find ourselves in now with demand to change our property Texas systems. When we look at the “administrative remedy” phase of…
More news from the Harris County Appraisal District Local legislators, candidates call for appraisal system reform By VAL CLIFTON <mailto:[email protected]> Published: 08.15.08 With many of their constituents feeling the pinch of increased taxes coupled with rising home valuations, legislators are expressing their disapproval of the state’s appraisal system.Senate Dist. 7 Dan Patrick said appraisal reform…
News on the Harris County Appraisal District HISD property dispute Early last month, I wrote about a spat that had the state comptroller’s office on one side and the Houston Independent School District and the owners of some big office towers on the other. Comptroller Susan Combs’ staff is responsible for ensuring that Texas counties…
Harris County Appraisal District’s Budget Skyrocketing commercial property values have led to costly court battles for the Harris County Appraisal District, prompting its leaders to propose increasing its budget to nearly $65 million next year. If approved by the district’s board of directors next week, the budget will have increased 35 percent from a comparatively…
Bad News for Retail Owners, Bad News For Texas Tax Rolls Ann Taylor is closing 117 stores nationwide. Eddie Bauer to close more stores. The company has already closed 27 shops in the first quarter and plans to close up to two more outlet stores by the end of the year. Cache is closing 20…
The story versus the truth, (The City of Dallas and DCAD). The following article from The Dallas Morning News which is not accurate. What follows is from an email I sent after listening to Councilwoman Hunt spin the City of Dallas Convention Sale to a Senate Committee on property tax reform: “I thought you might…
Changes needed in Texas property tax systems John Adams wrote that we are a “government of laws, and not of men.â€Â Yet many times when I am at appraisal districts tax consultants complain to me about these “state created principalities” (appraisal districts), blatantly break the law. For example, most appraisal districts (districts) do not recognize fair and equitable appeals informally…
Texas Property Tax Article Plan uses sales-tax hike to pay for schools (El Paso Times © 06/30/2008) Indexed Jun 30 2008 4:17AM (Article ID 197069252) , advocating scrapping the whole thing and beginning again. “We need to go back to square one,” said state Sen. Dan Patrick, R-Houston. Patrick and other conservatives propose abolishing school…
Current outlook for commercial real estate Equity Capital Remains on the SidelineStaff report, Jun 26, 2008 3:20 PM A current article brought out the following points: 2008 we are seeing dramatically lower transaction volumes. Equity capital earmarked for United States’ commercial real estate investment remains very deep. Falling buyer bid prices for available properties and given…
DFW show signs of trouble There were some who said the Dallas DFW real estate market was too strong to follow national trends. What have we seen half way through the year? Commercial real estate foreclosures are up from 2007. Single family residential prices are dropping, and now the Dallas Morning News reported that “net office leasing in…
HISD to file suit against Texas Comptroller’s Office. Houston & Texas News The Houston Chronicle reported that The Houston school board (HISD) voted Thursday to litigate if the state comptroller’s office findings cause the HISD to loose state school funding. HISD argues that The Comptroller Office overvalued their properties in their 2007 ratio study of HISD property values. …
Dallas Property Tax Roll Shrinking The Dallas morning News reported that the property tax boom years have come to an end caused by “softening of the housing market and slowdown in commercial construction”. Single digit tax roll growth has finally returned.
Two values in Texas property tax appeals We seek fair and equitable assessments when we file property tax protests. However, the odds are not in our favor nor do we play on an even playing field. The appraisal districts strive to increase their tax rolls and defending their values is their creed. If a valuation…
Texas Commercial real estate and property tax rolls….. In a paper titled; “GLOBAL BAN KING & FINANCIAL ANALYSIS ,Deterioration of Commercial Property Conditions Likely to Accelerate several dire predictions were made”. 1. “Commercial real estate (CRE) fundamentals are weakening due to spillover from worsening housing problems, widespread credit market disruptions and slowing economic growth”. 2. …
Strange days Bloomberg reported that the FDIC wants greater oversight over investment banks. Additionally, they want a orderly system in place to close them if they become insolvent. Why? The FDIC argues if these banks are given bridge loans from the Fed they should be subject to FDIC rules and regulations. The FDIC position comes from…
We’ll see My blogs have followed the economic downturn and I have attempted to tie them developments back to commercial real estate and Texas property tax valuations. Following the economic news everyday and speaking to real estate professionals I have come to the following conclusions: 1. I have found that there many spin doctors out…
What is going to happen? David Tic the Founder of the Prudent Bear Fund was quoted in Bloomberg today saying, “ losses from the U.S. mortgage crisis may reach $945 billion”. That would be much more costly than the Saving and Loan Crisis in the eighties. Is this possible? Answer: Everyday we hear the Credit crisis is…
Texas Margin Tax Fight Business owners are filing their returns and preparing to their first Margin Tax Payment (replacing the old franchise tax). The Dallas Morning News reported yesterday that various groups representing business owners are upset with the new tax and are making their feeling known to the Texas Legislature. Why are they so upset? …
Misc… The Dallas morning news reported that DFW home prices fall 2.1% from the first quarter of 2007. Bloomberg described the US Housing market as the worse since the Great Depression. One in every 519 homes is in some state of foreclosure in the US. Bank of America reported a distributing trend in their credit…
It is getting better….wait! Bloomberg: American International Group Inc. has announced the need to  raise $12.5 billion in capital after reporting quarterly loses.  The company’s vice chairman said there’s “no assurance” credit-market losses are over. “The financial sector is going to continue to be a drain,” said Dan Genter, president of RNC Genter Capital Management in Los…
Commercial real estate…what will happen? Bloomberg reported Josef Ackermann, chief executive officer of Deutsche Bank AG concerns over the state of commercial real estate. “Commercial real estate was a bright spot in the economy, serving as a buffer against the declining housing market.” New York University economist Nouriel Roubini thinks there are reasons for concern. He…
Think about this… Bloomberg reported that Warren Buffett stated had the Fed not intervened with Bear Stearns other investment firms would have collapsed the next day. Banks and investment firms have taken $312 billion in write downs thus far and “there’s going to be more pain,” .
Real estate trends mixed forecast RealShare reported today that the sixth annual RealShare Net Conference that sale-leasebacks will increase due to the slow economy. Panelist on the Town Hall Meeting titled, “State of the Net Lease Market,” made many predictions going forward: 1. “We will see a return to fundamentals with strong tenants and strong…
Texas Property Taxes, Four Phases of The Tax Year  Property Taxes are the primary financial resource for the operation of governmental entities in Texas. This is largely based on the fact that Texas has no state income tax. Annual valuations are determined by local appraisal districts and taxes are generally levied and collected by counties,…
Margin tax fair…no but what else can we do? Yesterday both the Dallas Morning News and Dallas Business Journal ran articles about the “Margin Tax.” This tax is assessed to business owners and who will be remitting their first payments within 30 days. Companies are complaining that the tax is unfair for various reasons. I…
The game plan The Texas Legislature during the 2006 Special Session passed and phased in a school tax rate reduction over 2006 and 2007.  It sounds good except that real estate values increased significantly in 2006 and 2007, which translated into higher taxable values. Homeowners were somewhat protected by a cap of 10% on their taxable…
One investment banker discusses what he sees in the future. In an interview today on Bloomberg, Phil Dow, Director of Equity Strategy, RBC Rauscher discussed his view of the credit crisis.  He stated that in his opinion Wall Street investment banks had addressed their loses in the sub-prime crisis and would probably regroup and turn-the-corner. However he…
Comparison of the Five Largest Texas Appraisal Districts I found the comparisons listed below very interesting. There are several efficiency comparisons which can be made between the five appraisal districts. I found Harris County to be the most surprising. Just as corporations have boards of directors, so to do appraisal districts.  The major difference between a private sector…
May means property Texas tax appeals First of all, a taxpayer should understand the nature of property taxes in Texas. Property taxes are the primary financial resource for the operation of governmental entities in Texas. This is largely based on the fact that Texas has no state income tax. Annual valuations are determined by local…
Two more banks reveal write downs Bloomberg reported that Suntrust Banks, Inc. and Fifth Third Bancorp are posting profit declines to cover defaults. Defaults in Florida and Michigan are extremely acute.  The sub-prime crisis and the receession are causing defaults on credit cards, home equity, and auto loans. “We expect credit conditions to continue to deteriorate,” Fifth…
Banks more problems Bloomberg: Bank of America said,” profits dropped for a third straight quarter as the company set aside $6.01 billion for bad loans.”  The bad news is blamed on passed due credit card billings and residential foreclosures. Bank of America is acquiring Countrywide Financial group the largest residential lending in the U.S. In-the-mean…
What Canada’s sees in the US Investment Executive reported, “ Commercial real estate could be the next trouble spot for large U.S. financial institutions that are already saddled with significant risk from their residential real estate exposures…” In a new report Fitch Ratings predicts “…In a new report the rating agency suggests that losses on commercial…
A day in the life I read everyday that we have hit the bottom of the sub-prime credit crisis. When I look at the news it continues to be bad. For example today’s headlines from Bloomberg; “Merrill has Third Straight Loss and CIT Group Has $250 million First Quarter Loss.” My observations tell me that…
Bankers say end in sight Bloomberg reported today that Lehman Brothers Holding Inc and Goldman Sach’s Group Inc. predict that “the worse is behind us.” They seem to be convinced that they worse is behind us and the banking crisis should get better in the next two quarters. JP Morgan Chase & Co. announced a dropped…
More bad news for banks The Sunday Times reported that Citigroup and Merrill Lynch reported additional sub-prime write-downs totalling $15 billion. It is expected  that Citigroup and Merrill Lynch will report disappointing first quarter losses. Internationally is is estimated the world ‘s largest banks have taken approximately a trillion dollars loses from write downs since…
Wachovia has problems Bloomberg has reported that Wachovia, the nation’s forth largest bank reported a loss of $393 million for the first quarter of 2008.  Additionally, they are attempted to raise $7 billion in needed capital. The Dallas Morning News reported that nation’s banks will be releasing quarterly results this week. “Investors will also examine how much…
Washington Mutual has problems Today Bloomberg discussed the estimated losses for Washington Mutual (WaMu) the country’s largest saving and loan. Losses from sub-prime loans “…ate up capital,” and may end up generating $17 to $23 billion in loses. WaMu sold shares to raise capital and to “…reassure investors that WaMu has enough capital to continuing to operate.”…
Bad news for commercial real estate The Wall Street Journal is reporting that commercial properties are showing signs of a downturn. Commercial sales are at a stand still as lending has dried up. The Journal predicts however that the commercial down turn will not be as bad as the current decline in the housing market. I take…
More unsettling news from the FDIC We see in the stories in the media about the The Fed and Wall Street but there is very little about the FDIC. I have written several blogs about the FDIC in what potentially could be the next wave of bad news. I have written that I don’t think…
Maybe we should be watching the FDIC On 4/2/08 I wrote a blog regarding the FDIC staffing up for anticipated bank failures.  GlobeSt.com has run an article on 4/7/08 titled “Recent FDIC Actions Worrisome Sign of the Times.” The article states that a California based bank with 22 location was given a FDIC “prompt corrective action†notice…
Texas Department of Licensing and Regulations Paul Pennington has been reappointed by the Texas Department of Regulation and Licensing to the Property Tax Consultants Advisory Board to a three year term ending February 1, 2011.
REITs think things are just fine? The Wall Street Journal reported that REITs think they are “largely unconcerned that the ongoing credit crisis and consumer-spending slowdown ,” will effect the value of their properties. In my opinion, that was a very bold statement based on Fed Chairman Ben Bernanke’s description of the economy in testimony before Congress…
DFW Industrial not doing well in 2008 The Dallas Morning News reported that leasing activity on industrial properties is down 60% in comparison to 2007. Cushman & Wakefield reported that there appears to be a “pullback†as a result of the national economy. Additionally, it appears that developers have overbuilt and that is also contributing…
FDCI Foresee Bank Troubles Ahead Today the Dallas Morning News reported today that the FDIC is adding 140 workers to handle the anticipated increase in troubled banks. Five Banks have failed since February 2007. There are those who believe that number could climb to 150 over the next few years.What does this mean? I believe…
Subprime spillage The Wall Street Journal Reported on March 13,”…The credit-ratings agency has a report out saying that sub-prime write-downs will total about $285 billion when all is said and done, putting the market “past the halfway mark,†as they title their report. ” Today Reuters reported, “The U.S. sub-prime housing crisis will not peak until 2009,…
2008 Texas Property Tax Appeals I believe it is a safe assumption that even if appraisal districts do not generally increase their 2008 residential home valuations, that the number of residential appeals will increase. Some might argue that if a homeowner’s value stays the same they will not appeal. I disagree. Homeowners have seen homes in…
Is the subprime meltdown ending? Bear Sterns is taking a hit reportedly for insolvency issues caused by investments tied to MBS (Mortgage Backed Securities).  The problem are bond funds backed by mortgages, which in some cases they (the funds) do not know the value of the mortgage portfolios.  Earlier this week we discussed the case of Carlyle Group which defaulted earlier…
Fed plans on loans up to $200 billion The Fed’s action is seen as an attempt to promote liquidity in credit markets and help sure up MBS. As a result the stock market was up 416 points yesterday. For a day everyone seems to be happy. However, when I listen to various professionals and speakers…
Mortgage-bond fund in trouble. Associated Press reported “The listed mortgage-bond fund managed by private equity firm the Carlyle Group failed to meet margin calls with four banks last week, raising fears that its entire portfolio recently valued at $21 billion could be sold off. A collapse at Carlyle would eat away at the value of…
Recession Ethan Harris chief economist with Lehman Bros. stated that the economy is in a recession. “The economy is likely to experience an extended period of very weak growth, a rising unemployment rate and significant further Fed rate cuts.” Additionally, Banks have borrowed 160 billion in Term Auction Facility from the Fed since mid-December. This…
How will the appraisal districts view real estate values for tax year 2008. Based on our previous blogs we at P.E.Pennington & Company, Inc. believe property tax valuations should level off and / or drop in tax year 2008. We believe it is save to say that appraisal districts will not agree with our opinion with…
How is all the bad news going to effect property tax valuations The Associated Press reports that the service sector (retail, health-care, construction, etc…) took a nose drive in January and February. Additionally, the Sub-prime fallout continues, inflation is up, the dollar is weak and the stock market is sinking. I have been following these…
Jack M. Cohn with Cohen financial reported “During this first quarter of 2008, a massive real estate resetting and deleveraging is occurring. Some say it is due directly to sub-prime and single family housing troubles. This is not entirely true. The commercial and residential markets are not linked but for three items: 1) space demand…
2007 Dallas commercial sales down The Dallas Morning news reported that the number of commercial sales were down in 2007. With the exception of retail sales all other catagories were down in 2007 as compared to 2006.
What do you think?  WASHINGTON — President Bush dismissed concerns Thursday that the economy is headed into a recession and remained confident that an economic stimulus package will help the nation amid a lingering mortgage and credit crunch. “I don’t think we’re headed into a recession, but there’s no question we’re in a slowdown,” Bush told…
Housing market getting worse….. The Associated Press reported yesterday that “…Sales of existing homes fell for the sixth straight month in January, dropping to the slowest sales pace on record, the National Association of Realtors said Monday.”
Conference Board’s index indicates recession The Associated press reported that the forth month in a row future business activity dropped. “…Conditions are nearing those that historically preceded recessions.”
2008 forecast looking worse The Fed expects “a further intensification of the housing market correction, tighter credit conditions amid increased concerns about credit quality and ongoing turmoil in financial markets, and higher oil prices.”
Economic Outlook According to the Dallas Morning News, “Economic policymakers acknowledged Thursday that the outlook for the economy has worsened.” Former Fed Chairman, Greenspan who months ago stated that our chances for a recession were 50%/50%, now says we are on the edge of a recession. It would seem if we slip into a recession the…
Forcast for commercial real estate is becoming shaky. According to the Wall Street Journal (WSJ), the forecast for commercial real estate is becoming shaky. According the WST “…if it were a movie, it might be called “Subprime II: Monster in Your Mall.” We at P.E. Pennington & Co., Inc. wrote an article in August and…
Darrell Hallmark Darrell Hallmark became a Senior Property Tax Consultant on 1/25/08 which is based on professional experience, education and successfully passing the examination administered by The Texas Department of Licensing and Regulations.
Grant Pennington Grant Pennington became a Senior Property Tax Consultant on 1/9/08 which is based on professional experience, education and successfully passing the examination administered by The Texas Department of Liencing and Regulations.
Chris Stanton 12.4.2007 Chris Stanton Vice President of P.E.Pennington & Company, Inc. has recently earned the CMI designation from Institute for Professionals in Taxation (IPT). The CMI is the highest level of professional achievement offered by the IPT and is recognized as a nationally as an achievement of expertise in the property tax field.