Officials Disagree on Appraisal Cap
Please let me know if you want ON or OFF my Texas ping list!. . .don't be shy.
No, you don't HAVE to be a Texan to get on this list!
Posted on 02/17/2005 10:00:47 AM PST by anymouse
State lawmakers this year are considering several proposals to lower the cap on property appraisal increases, and local officials have begun to take sides.
Many others will be asked to do so by County Tax-Assessor Collector Cheryl Johnson. She asked city leaders of Friendswood, Galveston and the county commissioners court to endorse a proposal to lower the cap on homestead appraisal increases from 10 percent to 3 percent a year.
What that would mean is the owner of a $100,000 home would see no more than a $3,000 increase in a single year, as compared to up to a $10,000 under the current cap.
Gov. Rick Perry proposed the 3 percent cap.
Other officials argue the lower cap could cripple local governments. Friendswood City Manager Ronald Cox earlier this month testified against another cap-lowering proposal before the state House Ways and Means Committee.
A 5 percent cap, contained in several bills proposed in the house, would have cost the city $640,000 if it had been in place since 2000.
“This revenue loss exceeds our entire annual street maintenance program,” Cox said. “Is the state ready to fill our potholes?”
Johnson said she believed a new cap, like the current one, should apply only to residential homesteads, and not second homes, rental properties and businesses.
She responded to critics’ concern that a lower appraisal cap was an assault on the local control cities, counties and other local governments have.
What the lower cap would do is limit the ability of local officials to claim they held firm on taxes. Those local officials set tax rates, but appraisal districts assess value. Tax bills are determined by the combination of tax rates and property appraisals.
“They still have the ability to raise the rates, so how are they losing local control?” Johnson said. “If you need more money, raise the rate.”
Appraisal increases in Friendswood have raised the average residential tax bill 31.8 percent in the last five years, she said. The tax bill on the average Galveston home has increased 31 percent during the same period because of appraisal increases, Johnson said.
While appraisals have gone up significantly, a hypothetical “average home” changes from year to year because of new construction coming on the tax rolls.
The Texas Municipal League, the Texas Association of Counties and others are lobbying against any lower appraisal caps.
The league, which represents cities, contends that lowering the cap would exacerbate already existing inequities in the property tax burden in the state.
It cites a state comptroller study that the top 10 percent of Texas households, with incomes more than $135,599, were predicted to pay 23.4 percent of the school property taxes, yet enjoyed 27.2 percent of the benefit of the current 10 percent cap.
But lowering the cap would further skew the benefit toward the wealthy, according to the league.
Opponents of the new cap point out that the state constitution requires that property be appraised at its fair market value.
“People don’t like property taxes because there isn’t always a connection between a person’s ability to pay and their appraisal,” said Frank Sturzl, the league’s executive director, arguing that the state has chosen a regressive, rather than progressive tax system. “That’s the big ‘I’ word and nobody wants to talk about it.” Sturzl was referring to a state income tax, which Texas does not have.
The lower cap would be a “slow death” to county governments, said Elna Christopher, director of media relations for the Texas Association of Counties.
The association complains that some of the proposals would cripple real estate markets because their caps are lifted on properties that are sold.
It also was unfair for state leaders to lower caps on local governments and then hand down unfunded mandates, Christopher said. She cited cuts made in the 2003 session to the Children’s Health Insurance Program and Medicaid, cuts that put more pressure on county indigent health care programs and hospital districts.
Voters always had the last word.
“County officials are much closer to their constituents,” Christopher said. “They see them at the grocery store, at church, at the Rotary Club. If those local taxpayers aren’t happy, they’ll turn them out at the next election.”
Johnson said that local voters should be given the opportunity to vote on a state constitutional amendment to lower the cap.
Texas tax ping
These clowns are having their budgets double every seven years and it isn't enough for them.
bump!
How about a Texas-sized Meek-a-ping?
Officials Disagree on Appraisal Cap
Please let me know if you want ON or OFF my Texas ping list!. . .don't be shy.
No, you don't HAVE to be a Texan to get on this list!
3% cap or tar and feathers.
:^)
hahaaa! Yeah.
MALE BOVINE EXCREMENT!!
This would be a great cause for the Texas Federation of Republican Women to adopt because they have chapters in all the rural counties that don't get good radio coverage.
Instead, everyone should be treated equitably, taxed on the full appraised value of their property, whatever that comes out to.
It's pretty sickening to hear someone whose house has doubled in value whine about having to pay more taxes than someone whose house hasn't doubled in value.
So you think you should pay the same tax for your 300k house that someone whose value hasn't grown is paying for their 200k house? That's preposterous. It's a property tax paid on the assessed value. If you want lower taxes, lower the rate for everyone, don't be demanding a special deal at other peoples' expense!
It sounds like they re-appraise your house on a yearly basis? Wow!
Here in Pennsylvania (3% state income tax) we only get re-appraised about once every 20 years. Same at the New Jersey seashore, where we have a vacation home.
I guess you guys in Texas are talking about the millage rate for property taxes? Here in Pa. the millage rate goes up (for everyone) but the assessed value stays the same.
The appraisal cap issue is a lot more complex than a lot of folks admit. Recent studies, including the legislative report by the Hill subcommittee for Speaker Craddick in January, show NO evidence that caps will do anything other than shift burdens from one group to another. Caps also shift control from local government to the state for revenue while the state and Feds keep pushing unfunded mandates down to local govt. on expenditures. No win deal for the locals while the state boys can claim they are "supporting lower taxation."
The Harris County (Houston) Republican Executive Committee just rejected caps and supported a 7 point accountability plan that could actually help to create a fairer and workable solution.
The resolution they passed is:
Resolution Supporting a "Seven Point Plan" Legislative
Agenda for Property Tax Relief
WHEREAS, Property taxes for most home owners in Texas have increased at a rate greater than 100% during the past ten years, a rate which is higher than the cost of living and higher than normal pub¬lic provided benefits to the typical home owner; now therefore, be it
RESOLVED, That the Executive Committee of the Harris County Republican Party supports the following agenda for Property Tax Reform:
1) Require an automatic reduction of the same percentage in tax rates equal to any increase in average tax appraisals; and
2) Require a super-majority vote of 75% of a governing body for any increase in the property tax burden; and
3) Require full public disclosure of real property sales, including the sales price, the financ¬ing and all other terms and conditions of the sale; and
4) Permit the second level of property tax appeals to be heard in Small Claims Courts with¬out reference to the amount; and
5) Require higher and more consistent competency requirements for appraisal district per¬sonnel, especially appraisers; and
6) Enforce strict ethics policies in the tax appeal process at the Appraisal District level; and
7) Make tax rollback elections easier to initiate; and
be it further
RESOLVED, That this resolution be sent to all members of the Harris County Republican Delega¬tion, all members of the House and Senate Committees addressing property tax legislation, all Republi¬can auxiliary organizations in Harris County, and posted on the web site of the Harris County Republican Party.
MR. CHAIRMAN, I move the adoption of this resolution.
PASSED by the Executive Committee of the Harris County Republican Party on the 15th day of February, 2005.
The appraisal cap issue is a lot more complex than a lot of folks admit. Recent studies, including the legislative report by the Hill subcommittee for Speaker Craddick in January, show NO evidence that caps will do anything other than shift burdens from one group to another. Caps also shift control from local government to the state for revenue while the state and Feds keep pushing unfunded mandates down to local govt. on expenditures. No win deal for the locals while the state boys can claim they are "supporting lower taxation."
The Harris County (Houston) Republican Executive Committee just rejected caps and supported a 7 point accountability plan that could actually help to create a fairer and workable solution.
The resolution they passed is:
Resolution Supporting a "Seven Point Plan" Legislative
Agenda for Property Tax Relief
WHEREAS, Property taxes for most home owners in Texas have increased at a rate greater than 100% during the past ten years, a rate which is higher than the cost of living and higher than normal public provided benefits to the typical home owner; now therefore, be it
RESOLVED, That the Executive Committee of the Harris County Republican Party supports the following agenda for Property Tax Reform:
1) Require an automatic reduction of the same percentage in tax rates equal to any increase in average tax appraisals; and
2) Require a super-majority vote of 75% of a governing body for any increase in the property tax burden; and
3) Require full public disclosure of real property sales, including the sales price, the financing and all other terms and conditions of the sale; and
4) Permit the second level of property tax appeals to be heard in Small Claims Courts without reference to the amount; and
5) Require higher and more consistent competency requirements for appraisal district personnel, especially appraisers; and
6) Enforce strict ethics policies in the tax appeal process at the Appraisal District level; and
7) Make tax rollback elections easier to initiate; and
be it further
RESOLVED, That this resolution be sent to all members of the Harris County Republican Delegation, all members of the House and Senate Committees addressing property tax legislation, all Republican auxiliary organizations in Harris County, and posted on the web site of the Harris County Republican Party.
MR. CHAIRMAN, I move the adoption of this resolution.
PASSED by the Executive Committee of the Harris County Republican Party on the 15th day of February, 2005.
Hey!! I don't need this! I just signed a contract on my first house!! The Tax Man is going to eat me alive!!
:-)
Well, then ..... congrats and welcome to da CLUB! :^D
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