CAD REFORM

Richard Dayoub, President and CEO

Greater El Paso Chamber of Commerce

The Issue• El Paso’s process for assessing property taxes and its

valuation system present obstacles to the city’s current stability and future development

• Recognizing its own lack of authority, the GEPCC seeks to begin the conversation about steps to improve the CAD’s function

• Possible remedies include local and state action

CAD Inefficiencies• Reform needed on multiple fronts• CAD Board issues: Appointment of elected officials, lack

of continuity and expertise, insufficient training, lack of accountability, potential conflicts of interest

• ARB issues: Appointees lack expertise, lack of continuity, no merit-based standards for appointment, cumbersome appeals process

Valuation Problems• Lack of transparency permeates valuation process• Valuation methodology offers no incentive for property

owners to make improvements• Adversarial system favors only attorneys and

contingency-fee appraisers• Statutory maximum of 10 percent should not be a blank

check for valuation increases• Taxing entities sometimes rely on proposed increases to

their detriment

Realistic Next Steps• Have taxing entities enforce accountability through

attendance and training requirements• Have taxing entities establish minimum standards for all

appointments• Let elected officials focus on obligations to constituents,

not adding to their responsibilities• Follow letter of Texas law in appointing board members• Taxing entities should establish notice threshold for

valuation changes (i.e. aggregate change of at least 1/10 of one percent of budget)

Final Thoughts• Have El Paso take the lead on reforming inefficient

system• Work with local delegation to address other needs that

may require legislative changes• Without a “silver bullet” solution, reform must be

cooperative and multi-faceted• Questions?