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Commercial Property Assessment Relief

Julia Frey

Mon, Aug 24, 2020 6:27 PM

Good afternoon,

I am wondering how any of you are addressing property assessment - in particular, commercial property assessment. In light of business closures, are you offering property assessment relief? For example, businesses that were forced to close for several months - are there property assessments (and, by extension, property taxes) being reduced to reflect the decrease in ability to produce income? We've had discussions of considering treating COVID related closures similar to a catastrophic loss adjustment. Any thoughts?

Julia Frey
Research Analyst
PA Local Government Commission
Pennsylvania General Assembly
Harrisburg, PA
Phone 717-787-7680
E-mail: jfrey@palegislature.us mailto:jfrey@palegislature.us

This e-mail transmission, including any attachments, is intended only for the recipient(s) listed above and may contain information that is confidential and privileged. Any unauthorized review, use, disclosure, forwarding or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Nothing in this transmission should be construed as a legal opinion or an official position on any proposed legislation. The Local Government Commission staff is prohibited from rendering legal advice or consultation and does not take a position on any proposed legislation unless directed to do so by the Commission.

Good afternoon, I am wondering how any of you are addressing property assessment - in particular, commercial property assessment. In light of business closures, are you offering property assessment relief? For example, businesses that were forced to close for several months - are there property assessments (and, by extension, property taxes) being reduced to reflect the decrease in ability to produce income? We've had discussions of considering treating COVID related closures similar to a catastrophic loss adjustment. Any thoughts? Julia Frey Research Analyst PA Local Government Commission Pennsylvania General Assembly Harrisburg, PA Phone 717-787-7680 E-mail: jfrey@palegislature.us<mailto:jfrey@palegislature.us> This e-mail transmission, including any attachments, is intended only for the recipient(s) listed above and may contain information that is confidential and privileged. Any unauthorized review, use, disclosure, forwarding or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Nothing in this transmission should be construed as a legal opinion or an official position on any proposed legislation. The Local Government Commission staff is prohibited from rendering legal advice or consultation and does not take a position on any proposed legislation unless directed to do so by the Commission.

Guzman, Leann

Mon, Aug 24, 2020 7:48 PM

My thoughts are biased from the POV of a city attorney. From a budgetary standpoint for the local government, taking away property tax revenue during a disaster that has also severely limited most other forms of tax and other revenue would be devastating. How is the local government supposed to fund services if there is no revenue? And while the disaster has also certainly devastated local businesses, too, the fact is that if you own property, you pay taxes on it - that's just the way it works. And not all local businesses who are severely impacted own the property - for example, the majority of the restaurants in one of our trendy neighborhoods lease their locations from well-funded entities, and how they negotiated payment of property tax in their lease is a matter between private parties. If legislatures want to help constituents during hard times, defunding the local government that provides them basic services like water, sewer, trash, and fire protection isn't the way to do it. Now stepping off of my soap box..... :-)

Leann D. Guzman
Deputy City Attorney
City of Fort Worth
200 Texas Street
Fort Worth, Texas 76102
817-392-8973
Leann.Guzman@fortworthtexas.gov mailto:Leann.Guzman@fortworthtexas.gov

Due to the ongoing coronavirus pandemic, the Fort Worth City Attorney's Office has implemented a department-wide telework and all staff, except the City Attorney, are working remotely. You may communicate with me by using my customary email address and telephone extension number.
City of Fort Worth - Working together to build a strong community
[Fort Worth]

RECIPIENTS - PLEASE CONTACT ME PRIOR TO FORWARDING MESSAGES DESIGNATED AS ATTORNEY-CLIENT COMMUNICATIONS.

This e-mail and any files transmitted with it are confidential and are intended solely for the use of the individual or entity to which they are addressed. This communication may contain material protected by the attorney-client privilege. If you are not the intended recipient or the person responsible for delivering the e-mail to the intended recipient, be advised that you have received this e-mail in error and that any use, dissemination, forwarding, printing, or copying of this e-mail is strictly prohibited. If you have received this e-mail in error, please immediately notify Leann Guzman at the City of Fort Worth City Attorney's Office at (817) 392-7600.

From: Disasterrelief [mailto:disasterrelief-bounces@lists.imla.org] On Behalf Of Julia Frey
Sent: Monday, August 24, 2020 1:27 PM
To: disasterrelief@lists.imla.org
Subject: [Disasterrelief] Commercial Property Assessment Relief

CAUTION: This email originated from outside of the City of Fort Worth email system. Do not click any links or open attachments unless you recognize the sender and know the content is safe.

Good afternoon,

Julia Frey
Research Analyst
PA Local Government Commission
Pennsylvania General Assembly
Harrisburg, PA
Phone 717-787-7680
E-mail: jfrey@palegislature.us mailto:jfrey@palegislature.us

In Texas, where we are heavily property tax dependent, the legislature just enacted in 2019 a temporary property tax exemption for property damaged in a declared disaster area. The statute isn't entirely clear on what "damage" means so when COVID hit, someone asked the Attorney General for an opinion on whether the exemption would apply for economic damages. He opined it would not. I do not know what will happen in the 2021 legislative session on this issue - I anticipate all manner of terrible things to be attempted against local governments in the next session. My thoughts are biased from the POV of a city attorney. From a budgetary standpoint for the local government, taking away property tax revenue during a disaster that has also severely limited most other forms of tax and other revenue would be devastating. How is the local government supposed to fund services if there is no revenue? And while the disaster has also certainly devastated local businesses, too, the fact is that if you own property, you pay taxes on it - that's just the way it works. And not all local businesses who are severely impacted own the property - for example, the majority of the restaurants in one of our trendy neighborhoods lease their locations from well-funded entities, and how they negotiated payment of property tax in their lease is a matter between private parties. If legislatures want to help constituents during hard times, defunding the local government that provides them basic services like water, sewer, trash, and fire protection isn't the way to do it. Now stepping off of my soap box..... :-) Leann D. Guzman Deputy City Attorney City of Fort Worth 200 Texas Street Fort Worth, Texas 76102 817-392-8973 Leann.Guzman@fortworthtexas.gov<mailto:Leann.Guzman@fortworthtexas.gov> Due to the ongoing coronavirus pandemic, the Fort Worth City Attorney's Office has implemented a department-wide telework and all staff, except the City Attorney, are working remotely. You may communicate with me by using my customary email address and telephone extension number. City of Fort Worth - Working together to build a strong community [Fort Worth] RECIPIENTS - PLEASE CONTACT ME PRIOR TO FORWARDING MESSAGES DESIGNATED AS ATTORNEY-CLIENT COMMUNICATIONS. This e-mail and any files transmitted with it are confidential and are intended solely for the use of the individual or entity to which they are addressed. This communication may contain material protected by the attorney-client privilege. If you are not the intended recipient or the person responsible for delivering the e-mail to the intended recipient, be advised that you have received this e-mail in error and that any use, dissemination, forwarding, printing, or copying of this e-mail is strictly prohibited. If you have received this e-mail in error, please immediately notify Leann Guzman at the City of Fort Worth City Attorney's Office at (817) 392-7600. From: Disasterrelief [mailto:disasterrelief-bounces@lists.imla.org] On Behalf Of Julia Frey Sent: Monday, August 24, 2020 1:27 PM To: disasterrelief@lists.imla.org Subject: [Disasterrelief] Commercial Property Assessment Relief CAUTION: This email originated from outside of the City of Fort Worth email system. Do not click any links or open attachments unless you recognize the sender and know the content is safe. Good afternoon, I am wondering how any of you are addressing property assessment - in particular, commercial property assessment. In light of business closures, are you offering property assessment relief? For example, businesses that were forced to close for several months - are there property assessments (and, by extension, property taxes) being reduced to reflect the decrease in ability to produce income? We've had discussions of considering treating COVID related closures similar to a catastrophic loss adjustment. Any thoughts? Julia Frey Research Analyst PA Local Government Commission Pennsylvania General Assembly Harrisburg, PA Phone 717-787-7680 E-mail: jfrey@palegislature.us<mailto:jfrey@palegislature.us> This e-mail transmission, including any attachments, is intended only for the recipient(s) listed above and may contain information that is confidential and privileged. Any unauthorized review, use, disclosure, forwarding or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Nothing in this transmission should be construed as a legal opinion or an official position on any proposed legislation. The Local Government Commission staff is prohibited from rendering legal advice or consultation and does not take a position on any proposed legislation unless directed to do so by the Commission.