ORDER NO. 29203 RESOLUTION TO VETO H. B 2438 On this 13th day of June 2005, upon motion made by Commissioner Baldwin, seconded by Commissioner Williams, the Court unanimously approved by a vote of 4-0-0, the resolution to veto House Bi112438. COMMISSIONERS' COURT AGENDA REQUEST ~~ `~ ~~ PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REOUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Paula Rector MEETING DATE: ,7une 13, 2005 OFFICE: Tax Assessor-Collector TIME PREFERRED: SUBJECT: Request approval of Resolution to veto H.B. 2438 EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: ESTIMATED LENGTH OF PRESENT A"FION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards you request being addressed at the earliest opportuniTy. See Agenda Request Rules Adopted by Commissioners' Court. Meeting scheduled for Mondays: 5:00 P.M. previous Tuesday. PAULA RECTOR, RTA Assessor and Collector of Taxes Kerr County Kerr County Courthouse 700 Main Street, Suite 124 Fax: (830) 792-2253 ^sPTe oFr `; F ;~; ~ ~. ~ F kR <: os' Kerrville, Texas ?8028 Phone: (830)792-2243 F.-Mail: paulani~ktc.com THE HONORABLE RICK PERRY Office of the Governor P.O. Box 12428 Austin, Texas 78711-2428 Re: H.B. 2438 Dear Governor Perry: I urge you to veto H.B. 2438, dealing with manufactured homes because it severely deters the ability of local governments to collect their ad valorem taxes assessed on manufactured homes. Specifically, the bill reinstates a practice repealed some yeazs ago, requiring local governments to file with the Department of Housing & Community Affairs their ad valorem tax liens in order for them to be enforceable against the manufactured homes. This provision was wisely repealed in an eazlier legislative session because it had been a perennial problem impairing the ability of collection of ad valorem taxes against manufactured homes. In order to file a valid lien, a significant amount of information had to be known about the manufactured home, including exact serial numbers, HUD label numbers, or state seal numbers. Since manufactured homes are not always rendered to the appraisal districts, in fact aze seldom rendered to the appraisal districts, it was and has remained an inconsistent incident at best whether taxing units had enough information to actually file a lien on a manufactured home. As a result, while liens were required to be filed, a great deal of taxes on manufactured homes were simply not collected for want of sufficient information. In many instances, the Department of Housing & Community Affairs rejected liens that taxing units submitted because the records that the taxing units submitted did not match the records of the Department. Again, this is probably attributable to the inadequacy of communication of the proper identification to the appraisal district which could in tum communicate such to the taxing units. It should be noted, that manufactured homes are the only kind of property in the State of Texas on which an ad valorem tax lien has ever been required to be filed. On all property, the ad valorem tax lien azises by operation of statue, specifically TEX. PROP. TAX CODE ~ 32.01. Why manufactured homes receive such favored treatment is an enigma. While other properties are automatically encumbered, a tax lien may fail on a manufactured home simply because, as noted above, the taxing unit does not have sufficient information, or has insufficient staffing, or has computer problems such that prohibit it from timely filing of the lien. During the past several years, in which no liens have been required to be filed, and Manufactured homes were treated just as every other piece of property in Texas, collections on manufactured homes ad valorem taxes have been significantly increased . Furthermore, over the past several yeazs, there has been a provision in the statues requiring anyone who wishes to get a permit to move a manufactured home to get a statement from the appropriate taxing authorities that were no taxes due against that home. This provision has also aided considerably in the collection of taxes against manufactured homes. H.B. 2438 inexplicably repeals that provision. As you are no doubt aware, the issue of funding local government, especially school districts, has been a serious one indeed for the state. Legislation such as H.B. 2438 only complicates that problem. Joining me in this correspondence and indicating their assent to it aze several of my fellow tax assessor-collectors and local officials. Sincerely yours, %t Tax Assessor-Collector Kerr County ~~ ~~ ~~ RESOLUTION OF THE COMMISSIONER'S COURT OF KERR COUNTY WHEREAS, H.B. 2438 has recently been passed by the Texas Legislature; and WHEREAS, that bill contains some provisions requiring taxing entities, such as Texas counties, to file liens in order to protect their tax assessments against manufactured homes; and WHEREAS, H.B. 2438 also repeals certain provisions of the law requiring a statement of taxes due in order to obtain a permit to move a manufactured home; and WHEREAS, such provisions will seriously erode the ability of local governments, including counties, cities, and school districts, from collecting ad valorem tax assessments on manufactured homes; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSIONER'S COURT OF KERB COUNTY, TEXAS THAT: The County of Kerr urges Governor Perry to veto H. B. 2438 due to its detrimental effect on local government finance and unreasonably favored treatment of manufactured homes in the scheme of ad valorem taxation. The foregoing resolution was moved and seconded at a meeting of the Commissioner's Court of Kerr County, Texas, on June 13, 2005, and adopted by a majority vote. „-„l--- ~L--'7 ~ Conant g ATTEST: County Clerk