Hey, welcome to ZacCast. Uh, this is Patrick. I'm here with Chad. What's up, Chad?

Hey, Pat, how you doing? You got a haircut, huh?

I did get a haircut today. Uh, went with the zero on the sides, 'cause I'm still a 14-year-old teenager at heart, and I like keeping my hair short. But yeah, all in all, things are well, and got a haircut today. Little spring break podcast. Kinda fun.

I have a question.

What?

Are there 14-year-olds who are not teenagers?

No, 'cause if you're 14, you're a teenager.

Okay, so you were just being redundant for fun?

Uh, it's... Yeah, my redundancy was just for fun.

Gotcha.

Just, just for giggles. All right, there we go.

I, I think we should probably issue some kind of nerd trigger warning before this episode. So after we talked last week, uh, we decided that it might be a really good idea to get into some deeper weeds with regard to property tax.

Well, and I, and I- yes, I think it's nerdy, but I also think this is, uh, this, this has the potential to be the most listened to podcast we ever do.

Wow, that's saying a lot!

That's, that's saying a lot- ... with all 400 and something listeners we may or may not have. So all that being said, today we're gonna talk about property tax, and we're gonna talk about the problems within the property tax system in Texas, and how that imbalance is negatively impacting residential property owners. So-

Now, that said-

Talk-

... this may end up having to be a, uh, like, a multi-parter. So we're gonna focus specifically on the problems in this episode, and if we need to, we can kinda get into a little bit more, uh, granular detail and, you know, talk about possible fixes or, you know, other, like, really complex parts of property tax. But this one's gonna be kinda high level, you know, here's what's going on, so that, uh, you know, in a way that you can tell other people what's going on.

So let, let me kinda, let me kinda start with, with how we got here. So, um, at ZachTax, we started a property tax analysis platform, right, on top of our already existing sales tax analysis platform. And, and what we found, as we started rolling out cities, I would- we have this chart on our first page that you can look at, and you can see the increase in assessed values in residential and the increase in assessed values in commercial. And every time we would onboard a city or a county, I would look at this chart, and I pretty much would, like, pick up the phone and call Chad and say, "Man, this is crazy! Like, the, the residential values are just so far outpacing the growth of the residential values."

Commercial.

Sorry, commercial, yeah. The, the residential values are outpacing the growth of the commercial values. And, and I kept looking at it, and I kept digging into it, and what I found was there was this imbalance there. And when I started digging into it, I started, you know, reading a little bit of, of what people had said. I- there's not a ton of articles on this, but reading a little bit of what had happened in the legislature, and we'll get into that in a future episode, like, why is the system set up the way it is? That's a whole conversation down the road. But this is the problem. This is the hypothesis, is the best way to say it. Because we're still collecting data, but what are we seeing right now? Our hypothesis is, is that because of the, what we've done in the state of Texas from a legislation standpoint and also from a case law standpoint, that there is a now a clear imbalance between commercial appraisals and residential appraisals in the state of Texas. So, why does that matter? And it's, it's real simple. It matters because when a commercial appraisal goes down, in order for governmental entities to collect the same amount of revenue that they did the year before from the same properties, we call that now the no new tax rate in Texas.

Used to be the effective rate, truth in taxation, now it's called the no new taxes rate.

Yeah, it's called the no new taxes rate. What, what happens is, is that that burden passes to the residential side. And, and I'm gonna, I'm gonna explain this really as, as, as cleanly as I possibly can. When residential appraisals are done, they're appraised based on market value. So a house down the street sells, uh, for, you know, $160 a foot. Your property is identical or similar to that property, your property's now worth $160 a foot, right? That's the appraised value based on market.

Can I interject real quick?

Yes.

So for residential properties, the appraisal districts are required to appraise them on the basis of value as a residence homestead, regardless of how it's being used.

Correct.

If they have to appraise it on the basis of it being used as a residence homestead.

Correct. So-

So that means, yeah, comps, like, those all go into play, and because we have, like, MLS listings and sale prices are a lot more easily, uh, easily obtained, it's a lot easier for residential property to stay up and track closer to the market values.

Yeah, and if you're listening to this and curious what that door squeak you just heard and the sound is, that's my kid being-

I didn't hear it

... It's spring break. But yeah. No, that, that is correct. Commercial appraisals are not done the same way. Commercial appraisals can be done on multiple different methods that have been written into statute, and also by methods that have been fought in court to allow for a specific type of method to be used-

Yeah

... in commercial appraisals.

We can talk about those in a minute, if, if you wanna go.

Yeah.

Yeah.

We'll, we'll, we'll get into those a little bit. But the, the reality is, is that if a city is collecting revenue, and a commercial appraisal i- is stagnant or goes down, then the burden of that same no new taxes rate is shifted to residential taxpayers. So what we hear in Texas all the time is-... my taxes are going up, my taxes are going up. And the legislature has put in place tax caps, no new taxes rates, all these different types of mechanisms to try to slow the growth of property tax in Texas. What they haven't told residential property owners is, is that it's an unfair advantage to the commercial properties. The commercial properties do not have to meet the same thresholds as residential properties, so therefore, they are able to get a better, ah, tax environment than those residential properties. So, ah, to sum this up, you could build a $20 million grocery store, and you could get that $20 million grocery store reappraised at $6 to $8 million, okay? You cannot build a $20 million house and get a house reappraised for $6 to $8 million. So that loss of appraised value, when you're talking about a no-new-tax rate, that shifts, that burden shifts to the residential property owner, which is why, even though the city is collecting the same amount of money they collected last year, you're paying more in taxes. Thoughts on that?

That's, that's your nutshell?

That's my nutshell.

So we- in our last episode, you kind of gave this really high-level example of, you know, s- a city that's generating 100 million in property values, and-

Mm-hmm

... that's split 50/50 between commercial and residential. If that number were to shift, say, 45/55, then to generate the same amount of revenue, the residential properties are going to be paying more in taxes, right? So like-

Correct.

So just as a summary to what you just said, I wanna be careful not to, not to be too normative or use judgmental language about it yet, but-

Mm-hmm

... but right now we're just talking about what the problem is and trying to explain it. But I think what you said is probably as simple as it could be said. Um, when, when one portion of your tax base is being appraised in a manner that's a lot more closely aligned to market values and the other one is not, then if the city or the taxing jurisdiction cannot generate more revenue, then, of course, that burden is gonna be shifted over to one versus the other.

Correct. I mean, so, so, to sum up the hypothesis, the hypothesis is this: residential property taxes in Texas are going up, not because cities are increasing taxes. They're going up because commercial properties are offloading their tax burden based on assessed values onto residential property owners.

Yeah, and in a future discussion, we'll go through some data on actual tax rate changes, because the comptroller does have a statewide listing of tax rates-

Mm-hmm

... and, you know, approved tax rates. So we'll kind of go through, and I haven't actually looked at it yet. I just found it last night. So we'll go through and do some research on it and provide whatever the actual information is. I mean, if it says that 15% of cities are raising taxes, then, you know, we'll tell you. It, it is what it is. But even without raising taxes, in following the no new tax revenue, ah, tax rate, that burden is getting shifted to residential properties. Can I give you one example?

Yeah, no, I think we should give a couple examples-

Okay

... 'cause I know you and I have talked back and forth about that.

Okay, so two anecdotes do not make, you know, a scientific study, but let me just give you two examples of places that I looked at yesterday. One of them is a, a Walmart, and since this is public data, I guess it doesn't matter if I tell you who it is.

Correct, yes.

A Walmart is appraised for land and improvements a little under $10 million. This is, it's a 180,000-square-foot store, so that's, like, 21 bucks a foot. Ah, 'cause I think the, the land was at, like, 6.8 million, and the store was 3.2 million. So going back-

Which, to be clear, you can't buy a house in Texas for less than $100 a foot.

Right.

Correct. Yeah, I'm just throwing that out there so everybody knows.

So going back to 2014, the land value of this Walmart has actually decreased by .02%, so it's basically stayed flat over, what, a seven-year period. And that same time period, I handpicked, like, four or five residential properties that were, like, literally across the street. That land value has gone up 71%. Okay? The improvement value for the Walmart during that same time period went up 17%. The residential properties have gone up 44%, so that's a 51% increase in total for the residential properties and a 6% increase for Walmart since 2014.

Now, what it, it... So we haven't said anything about where this Walmart is, so we-- You know, obviously, we also have the sales tax data-

Mm-hmm

... for this Walmart, right? And, and since we haven't said where it is, what was the actual growth in sales tax since 2016 of this Walmart store?

This particular Walmart did not have great growth-

Okay

... over that time period. It had some competition open up in adjacent areas, um, which one might think, you know, would have an impact on the property values, right? But-

Correct

... you'd have additional development, but it hasn't. The past two years, sales tax has increased about what you would expect for a Walmart, but those first three or four years were, eh, kind of meh, rel- relatively stagnant.

Okay.

Um, but what happens, though, in this particular situation is those homes, the tax appraised value is tracking more closely with its actual market value. If you go look at the Zillow estimates, they're actually about 15, 20% below those estimates, the appraised values are. So they're still under, and that's partly 'cause they can only grow, you know, 10% per year.

Just a little bit of background on Zillow. Zillow uses CoreLogic, which is taking information directly from MLS-... So basically, sales data, that's how Zillow comes up with your Zestimate, is based on the actual sales data. So it's about 15% be- behind market. It's, like, a year and a half behind the real estate market, probably in- we're looking at the DFW area, I'm sure.

Okay, so that's example number one. Example number two is a Lowe's. Different community, uh, but yeah, again, up here in the DFW Metroplex, since 2016, the valuation has been 6.92 million, unchanged.

Since 2016, the property underneath this Lowe's has not grown in value, the improvement values have not grown in value, there's been no change.

During that time, a 30% increase in sales.

Okay.

Okay? Now, that's gonna be important because when we talk about the methods for appraisal, income is one of them, and income- the income method includes an element of rental income, uh, but actual income, like business income, also is a component in it, so-

Which is ironic, 'cause appraisal districts don't have any access-

To that data

... to taxable sales. Correct.

Okay, so during that same time, uh, some random houses that were just on the backside of that Lowe's increased 46% in value. So even if tax rates had stayed totally flat, Lowe's is paying no more in property taxes for that city, and those residential homeowners are paying 46% more. Now, unless their incomes have gone up, that's potentially a problem.

Correct.

Right? Um, now, that's not 46% of their income, that's just a portion of their income, but it's 46% increase in their property values, which means that their property tax bill would go up 46% over that time, assuming those rates remained unchanged. But yeah, so this discrepancy in how we appraise commercial versus residential properties, you can kind of see, at least from these two anecdotes, you can see how when the overall tax burden cannot be increased because of the no new tax revenue, ta- tax rates, then what ends up happening is that even if the tax rate goes down, the residential piece is picking up more and more of the tab than, than the commercial piece is.

Well, and, and some of our city folks would say, "Well, then you could increase your residential homestead exemption," right? That, that would be something that somebody would say. The problem here is, is in the Lowe's example that you just gave, their tax rate didn't go up at all, so there's no way that a homestead could actually reduce the burden when you have commercial appraisals that haven't been touched since 2016.

Yeah, and I have not looked at the... The problem with these no new tax rate, no new tax revenue rules is that they're really convoluted because they have to account for an immense variety of ways that cities operate.

Mm-hmm.

Right? So, like, what happens if you, for example, divest a, a, a function or a department of your city, and you maybe give it to the county, right? The way that you have to calculate your no new tax revenue, tax rate, you basically have to apportion a piece of your property taxes to that service and reduce that from your no new revenue calculation, and then the other jurisdiction that's taking on that new service has to add that amount back into their calculation. So it's just sort of balancing act that you have to do because this no new revenue thing is so convoluted. Um, if you were to create a new mass transit sales tax or a transportation sales tax or, God forbid, a sales tax to reduce property taxes, like, the nuances of how cities actually operate are very difficult to dispel down into a simple formula to determine if you're actually charging more in property taxes or collecting more property taxes, right? So as it is, this no new revenue system, or the old truth in taxation system, is so complex because city government is complex, and they're trying to account for all these complexities in a way that, quote, "protects the taxpayers," but in reality, it just makes things more confusing.

Well, I, I wanna be real clear. Uh, we are- we're not gonna make any friends by talking about this, right? I mean, the, I- I think the more that I've dug into this, the more that I, I have realized that there is a small group of individuals out there that prosper within the system that's set up in Texas right now, and we'll talk about that in a future podcast episode as we dig into who's benefiting from the way that it's set up and why was the legislation written the way it was, and we will dig into all of that later. But I, I wanna be very clear, you know, we- we're some of the first people that are starting to speak up, because we are... And, and, and the question that I got from a couple people I talked to is, is, "Why are you the first people to speak up?" And, and the answer is really simple: because property tax is county by county. It's appraisal district by appraisal district. There's no big statewide database of property tax until now.

Yeah, and also, we don't ha- really have a vested interest. I mean-

Correct

... you know, when you're in the field, it's a lot more difficult to, to say certain things, and we're not in the field anymore, so we don't care quite as much as we did maybe two years ago.

But when you're City A, you look at your appraisals, and you're like, "Well, that just must have to be something that's going on in my city," right? But City A is not lookiting at- looking at City B, and City C, and City D, and City E, and, and this all started with I started looking at this, and I started saying it to you. And you're like, "Well, I mean, it's just one city," right? I'm like, "Okay. All right, cool, yeah." And then the next one popped up. We put the next one in the system, and I'm like, "There it is again." And you're like, "Ah, you know, I mean, we got, we got... You know, two is not a coincidence, you know, or it could be a coincidence. We'll just see." And, and, and so as we've started putting more and more data in, I mean, I would say that you're a believer that this is a hypothesis that we should at least explore.

... Oh, yeah. Yeah.

Yeah, so-

I mean, but what you do about it is partly a prudential question. It's partly a question of, you know, value judgments. But regardless of how you view this problem, from a logistical standpoint, one of the effects is that when people's residential property taxes continue to rise, even though their state legislators keep telling them that they're fixing it, all it ends up doing is making the system that much more complicated, because they try something else to fix it. But there's this underlying thing that's keeping it from actually being resolved, and if that's not addressed in one way or another, or at least discussed, then the system is just gonna keep getting more complicated and probably worse than it is now.

And, and-- correct. And to be clear, I'm not saying that 99% of the legislature is in cahoots to screw over residential taxpayers.

It's so complicated.

It's so complicated. It is incredibly complicated, and, and once again, back to the original statement, until now, there was nobody out there that was putting together the data from multiple jurisdictions, multiple counties, and multiple areas of the state to see the, basically the correlation that was occurring, right? And now that we've seen it, we're bringing it to people's attention. We are hypothesizing that this is an issue, and we are researching and digging in to this information. And, and I wanna say two things. The first thing I wanna say is, to the cities out there that I've, I've been in the trenches with you, and we've fought all these new rules when it comes to property taxes, "Hey, we fought the wrong fight." Like, we were actually fighting the wrong fight. We, uh, we were fighting a fight that these legislators thought they were protecting their taxpayers, and the reality is, is that we were fighting the wrong side of the system, and we should've been fighting the other side of the system together.

Yeah, yeah. We were fighting the appraisal caps.

Correct.

Yeah, when in reality-

Yeah, and-

... that was just-

We should-

-a symptom.

Yeah, and, and, and, you know, I, I sat in so many rooms where I would sit in a room of city, and cities say, "I don't even understand why they wanna put appraisal caps on." I mean, outside of, like, the city of Austin, nobody's really raised taxes all that much, right? And, and, and we'll talk about that in a future episode. We'll dig into that data from the appraisal districts and, and give you that, that actual number. But the reality is, is that I think we fought... The cities fought with the legislature, and the legislature fought with us, and we should've been fighting what was happening in commercial appraisals, because that's ultimately what is raising people's taxes. S- A lot of these cities are collecting the same amount of money, yet residential taxpayers are paying more because commercial taxpayers are not paying their fair share or less of the burden than they should based on the valuation of their property.

Yeah, and I'd even say forget about the term fair share and any kind of language that has that sort of value judgment.

Correct.

Forgetting about, quote, "their fair share", they're just paying a lower burden over time-

Mm-hmm

... because the total amount of revenue cannot be increased without jumping through a lot of hoops.

Which, you know, you have a lot of other conversations that, that stack onto this. Uh, the, the biggest one that comes up all the time is affordability for seniors, right? That people are being taxed out of their homes because their taxes are going up 8% a year, or 7, whatever that number is. Their taxes are going up, and they're on fixed incomes. I mean, we heard that a lot when we worked in cities. Uh, I mean, I heard it from residents in Hudson Oaks, even though Hudson Oaks didn't have a tax, right? They would complain about school district taxes and county taxes. The reality of it is, is that those governmental entities were not really increasing tax rates. We were just shifting burden. So that's the first thing. The first thing was the message to cities that, "Hey, we, we were fighting the wrong fight, and we need to refocus our energy and have this conversation. We need to fix this, 'cause if, if we fix this, we can actually do some good for our taxpayers, our actual voters," right? That's item number one. Item number two, in my opinion, is if you own residential property or you're a renter, it doesn't matter. You're paying taxes either way. If you're a renter, you're paying taxes through your rent. If you're an owner, you're paying taxes directly, okay? You should be livid. You should be going through the roof, upset, asking your legislators to make a change. They need to understand this issue, and they, they need to take control of it, because your taxes are going up while these commercial appraisals are getting that benefit of shifting that burden to you. That needs to happen. We gotta have that conversation.

Okay, so commercial appraisal methods. In the state code, there are three identified. There's cost-

Mm-hmm

... which is, it's based on cost data from generally accepted sources. They can adjust it for, uh, physical, functional, or um, economic obsolescence, right? In other words, it's a black box.

Mm-hmm.

They can appraise based on the income method, which is either based on comparable rent data or potential earnings capacity of the property. So again, it's a black box. Or they can do market data comparisons based on comparable sales within 24 to 36 months, depending on how big the county is. But in Texas, uh, commercial sales are not required to be disclosed, so unless there's some kind of, you know, SEC filing... Uh, I actually found a, a study from, like, some grad student at UTA back in, like, 2012, and he listed the Pier One building in Fort Worth and the RadioShack building, and the cost of those wa- uh, to construct, was known because they were included in SEC filings.

Mm-hmm.

You know, but it's not just data that you can go grab, uh, you know, off the street. Uh, it's like, um, -... like in Back to the Future, when Marty goes back to 1955, and Doc Brown's like: "I don't know what things are like in 1985, but in 1955, you can't just go to the corner store and buy plutonium." It's like-

Yes

... you, you just can't get this information readily available.

Mm-hmm.

So at the end of the day, what ends up happening is that a number is plucked out of what appears to be largely thin air, and that's the appraisal. And, uh, commercial appraisals tend to change with less frequency, uh, than residential appraisals do. Your residential appraisal is supposed to- is supposed to have, like, a physical look every three years, but a lot of times they'll do, like, bulk shifts based on market trends in your neighborhood, and things like that. So your appraisal's probably changing every single year as a property owner, or residential property owner, but commercial properties don't change as frequently. Um, and-

And in some cases, we see they haven't changed since-

Yeah, so they never change.

Never change. Yeah.

So, so those are the three a- methods of appraisal for commercial properties, and they differ from the residential appraisal methods, insofar as a residential appraisal is intended to, uh, to give a value based on the actual... or, or to give a tax value based on the value as a residence homestead, period. That's a lot easier to, to calculate.

So the appraisal that you had, I believe you had an appraisal on Kroeger. What was the actual appraised amount for Kroeger?

I did Lowe's and Walmart.

Okay, so, uh, what, what was-

So the total for Walmart was around 10, and the total for the Lowe's was around seven.

Okay, so, uh, let, let's take Lowe's, for example, right? Uh, a, a typical Lowe's store, you know, some of our city colleagues could correct us on this if they wanted to, they are going to permit construction of that store, and they're going to permit construction at that store somewhere between $12 and $16 million to build a brand-new Lowe's store, and you have the appraisal at what?

$7 million.

Seven. So in my mind, why is it that in order to build a new Lowe's store, it would take $12 million, yet Lowe's is only appraised at $7 million?

I mean, I suppose there... I'm not trying to say that commercial appraisal is not, is not more complicated than residential appraisal, right? I mean, a house has a specific use, a single use. It's either a homestead or it's a rental property, but at the end of the day-

Mm-hmm

... it's a residence. Um, what is the actual market value for a $180,000 square foot empty Walmart? I don't know. It's probably not as much as what it cost to build, but that doesn't necessarily mean that the appraised value should be at least what it cost to build.

Correct. Yeah, I mean, it, it... You, you should at least have the appraised value at more than $20 a foot because it costs more than $20 a foot to build a Walmart store today.

I mean, just for the concrete.

Correct. I mean, but that, that- that's the point that I'm trying to make. Look, there, there could be some differences in commercial appraisals. I'll, I'll give it that, but they can't be $20 a foot, right? They... You, you can't, you can't claim that a Walmart store could be built for $20 a foot. And, you know, the, I, I think we should go into the dark box theory just a little bit, which is w- what a lot of these larger retailers like to do, and they've got, you know, some case law behind them, but like, what they like to do is they like to go out there and say: "Look-

And high-powered lawyers.

And high-powered lawyers who are making, you know, finder's fees and collection fees based on what they save these, these individuals-

Or-

... in taxes.

Or various consultants who happen to-

Various-

... Who also happen to write-

Also write property tax law

... Yeah, happen to write the property tax law in Texas. Future podcast, folks, you should listen to that one. So but the reality of it is, is that if it cost $12 million to build, then why isn't it valued at $12 million? That's, that's the simple question we should be asking our representatives, and we need to do that because when lumber goes up, the value of all homes goes up, right? So lumber is increasing in value right now and price, so the cost to build a new home is increasing, and when the cost of a new home increases, the cost of existing home stock increases, which means as things sell, your appraised value goes up. It's a real simple connect-the-dots, fa-la-la-la connection, right? That doesn't happen in a, in commercial appraisals because of the system that's been put in place, and you, as an individual, are paying more personal taxes on your property because of it. Good enough place as any to stop this one?

Yeah, I think so. I, I think-

Look, the- we have a lot more left to get into on property tax stuff. For example, the, the appraisal caps on residential properties at 10% causes really wild things to happen, especially, like, in, say, around 2008, 2009, we had the big home bubble, and values were skyrocketing, but then, you know, the whole market crumbled. But people's appraisals were still going up because there was a gap between what the house was worth and what it was appraised for, right? So this causes a lot of confusion, and, you know, people throwing their hands up in the air, "My home value is decreasing, but my appraised value goes up, my taxes go up as a result, and that makes no sense, uh, because the market's tanking." But again, as a way to, quote, "fix this problem", you know, we have all these other sort of band-aids that just cause confusion and make things more complicated, so we can talk about that for sure.

I, I mean, I think, you know, look, in future episodes, we're gonna talk about, um... We're, we're gonna bring more data to the table. We're gonna have some database con- you know, database conversations. Ha ha ha. We're gonna have data conversations to, to show you what we see, right, at the end of the day, and, and through a podcast, maybe we'll want to throw some stuff up in the show notes for people to review as well. We'll talk about what the actual increase in taxes by cities has been a- across the state. Uh, how many have increased taxes? How many haven't?... you know, it will also dig into the specifics of what the legislation has been historically, who wrote that legislation, who had influence on that legislation, and why we are where we are. I, I, I hate to say expose, like, we should never have allowed this to occur in Texas, but it's such a complicated issue, there's just not anybody who understands it, and we're gonna try to do our best to explain it, to put it in as simple a terms as we possibly can, provide the evidence, and show it. And we- my goal, I don't wanna speak for Chad, but my goal is to change the conversation at the state level. If we're gonna keep a property taxation system... And look, Chad and I aren't even, I will speak for Chad here, we're not big property tax people.

Yeah, may- maybe we can have-

Like-

-like a whole e- whole episode about why we don't like the property tax.

Why property tax is terrible, right? But, but the reality of it is, is that the system that we do have in place has some major faults, and it has some faults that are just flat-out wrong, and they're moving burden from one side to the other, and it's exponentially getting worse as we go, right? That, that's the problem, is if we don't stop it now, it's gonna continue to get worse, and we have time to fix it. We, we currently have time to fix it, so we need to do it.

Yeah. Yeah.

Uh, so that-

I-

... that's kinda where I wanna wrap.

I, I thought your comment on we're fighting the wrong fight was the most apt way to say it. We've been fighting tax appraisal caps, revenue caps, things like that. We've been fighting on the margins, but there's this underlying structural issue that is the root of all these other problems. So let's kind of really dig into that and r- refocus our, those discussions.

Absolutely. So, hey, appreciate y'all joining us today on ZacCast. Obviously, this is the first of many conversations that we're gonna have on property tax and the shifting of the burden. Uh, you know, it's a bit of an illusion. I know it's hard to hold on to, but join us for some future episodes. Hopefully, we can continue to, to show you what we see. See you guys next time. See you, Chad.

See ya!