Posted on 10/18/2013 9:44:36 AM PDT by thetallguy24
On November 5th, 2013, Texans will have the opportunity to vote on 10 proposed amendments to the state’s constitution. Hardhatters offers our views and recommendations.
Prop 1 (HJR 62)
Ballot: The constitutional amendment authorizing the legislature to provide for an exemption from ad valorem taxation of all or part of the market value of the residence homestead of the surviving spouse of a member of the armed services of the United States who is killed in action.
Summary: Proposition 1 will allow for the surviving spouse of a member of the U.S. armed services who was killed in action to receive an exemption for all or part of the total appraised value of their homestead residence, but only if the surviving spouse had not remarried since the death of the member of the armed services; and the property was the residence homestead of the member of the armed services at the time of death. Proposition 1 also would allow the Legislature to provide that the exemption follow the surviving house to a new homestead, limited to the dollar amount of the exemption in the prior qualifying homestead. The exemption would end if the surviving spouse remarries.
Cost to Taxpayers: $108,921
Our Recommendation: Vote Yes
Disabled veterans are already exempted on property taxes; however, spouses of deceased veterans are not. Prop 1 would extend this exemption to the widows/widowers of those killed in action while serving in our armed services. The only disadvantage is that it might dis-incentivize beneficiaries from remarrying. However, we believe that taking care of the families of those who made the greatest sacrifice for our nation is the right thing to do.
Prop 2 (HJR 79)
Ballot: The constitutional amendment eliminating an obsolete requirement for a State Medical Education Board and a State Medical Education Fund, neither of which is operational.
Summary: Proposition 2 will remove provisions for the now-defunct State Medical Education Board and the State Medical Education Fund from the Texas Constitution.
Cost to Taxpayers: $108,921
Our Recommendation: Vote Yes
Neither of these agencies is in existence, so this amendment simply cleans up any reference to them in our already extremely long Constitution.
Prop 3 (HJR 133)
Ballot: The constitutional amendment to authorize a political subdivision of this state to extend the number of days that aircraft parts that are exempt from ad valorem taxation due to their location in this state for a temporary period may be located in this state for purposes of qualifying for the tax exemption.
Summary: Current Texas law exempts property that is temporarily located in Texas from ad valorem inventory taxation for up to 175 days, after which the item must be shipped out of Texas. Eligible property includes, among other items, aircraft and aircraft parts used for maintenance or repairs by certified air carriers. Proposition 3 gives local governments the option to extend the exemption duration up to 730 days for these aircraft parts, after which the parts must be transported outside of the state. This change is temporary and expires in 2015.
Cost to Taxpayers: $108,921
Our Recommendation: Vote Yes
This is a non-binding, temporary tax break for personal property owned by airline companies, aircraft owners, etc. While this bill would allow companies to reduce tax expenses on the parts and man hours accounting for them, there is no guarantee any of the property owners would experience such a benefit. The extension of the exemption duration is only effective IF the local government instituting the tax allows it, so it remains to be seen if these local governments would voluntarily give up tax dollars. We recommend supporting this potential tax break with fair warning that it may not come to fruition even if passed.
Prop 4 (HJR 24)
Ballot: The constitutional amendment authorizing the legislature to provide for an exemption from ad valorem taxation of part of the market value of the residence homestead of a partially disabled veteran or the surviving spouse of a partially disabled veteran if the residence homestead was donated to the disabled veteran by a charitable organization.
Summary: Proposition 4 would allow the Legislature to exempt ad valorem taxation for all or part of the market value of the residence homestead of a disabled veteran if the residence homestead was donated by a charitable organization at no cost to the veteran.
Cost to Taxpayers: $108,921
Our Recommendation: Vote Yes
There are several organizations dedicated to donating housing to disabled veterans, yet those who receive the donation still have to pay taxes on it. We believe that helping disabled veterans on fixed incomes is the right thing to do. They should not have to pay taxes on the home given by a charity.
Prop 5 (SJR 18)
Ballot: The constitutional amendment to authorize the making of a reverse mortgage loan for the purchase of homestead property and to amend lender disclosures and other requirements in connection with a reverse mortgage loan.
Summary: Proposition 5 would allow for seniors, age 62 or older, to take out a reverse mortgage on their current residence in order to pay for a new homestead property, which the homeowner must occupy as a principal residence within a specified time after the reverse mortgage closing. Proposition 5 also requires a prospective reverse mortgage borrower and their spouse to complete financial counseling before the reverse mortgage closing, as well as requiring lenders to provide full disclosure to prospective borrowers about behaviors which could lead to foreclosure and other negative effects. Both the lender and borrower would have to sign the disclosure.
Cost to Taxpayers: $108,921
Our Recommendation: Vote No
Reverse mortgages are a scam, plain and simple. This amendment would expand the abilities of reverse mortgage companies to take even more advantage of the elderly and their beneficiaries. This bill would allow seniors to take out a reverse mortgage on their current home and use it to buy a second home, which then becomes their homestead. The impact is that the seniors lose the equity in the first home, they make ZERO payments on the second home, and all of the debt is passed on to the inheritors. In fact, reverse mortgages allow seniors to take on additional debt without any risk to them. All of the debt is passed on to the beneficiaries without their permission. Reverse mortgages do what the federal government does, pass on debt to the children and grandchildren. We should not be expanding reverse mortgages in Texas.
Prop 6 (SJR 1)
Ballot: “The constitutional amendment providing for the creation of the State Water Implementation Fund for Texas and the State Water Implementation Revenue Fund for Texas to assist in the financing of priority projects in the state water plan to ensure the availability of adequate water resources.
Summary: Proposition 6 would allow for the Texas Water Development Board to create two funds: the State Water Implementation Fund for Texas (SWIFT) and the State Water Implementation Revenue Fund for Texas (SWIRFT). Over $2 billion will be transferred into SWIFT from the Rainy Day Fund, and this money will be used to give loans to applicants to finance water infrastructure and conservation projects throughout the state.
Cost to Taxpayers: $2.2 billion
Our Recommendation: Vote No
As we noted in Proposition 6: Texas Water Draining the Rainy Day Fund, voters already approved $6 billion worth of bonds (DFund II) for water infrastructure, rural water assistance, and clean water funds, yet the Texas Water Development Board has only used roughly 6% that. Prop 6 merely injects $2 billion in cash into a program where funds are readily available for the same purpose. This amendment will only drain our Rainy Day Fund, increase bureaucracy, and allow for more shady political appointments.
Proposition 7 (HJR 87)
Ballot: The constitutional amendment authorizing a home-rule municipality to provide in its charter the procedure to fill a vacancy on its governing body for which the unexpired term is 12 months or less.
Summary: In a home-rule municipality (a city with a population of more than 5,000 that has adopted a home-rule charter), the Texas Constitution requires the city to hold a special election to fill any vacancy of an elected city position that has an unexpired term of less than 12 months. Proposition 7 would allow for home-rule municipalities to amend their charters and decide for themselves whether they want to hold a special election or appoint someone to fill any vacancy that has an unexpired term of less than 12 months.
Cost to Taxpayers: $108,921
Our Recommendation: Vote No
This bill reduces democracy on the local level. Prop 7 allows city councils to choose (without voter approval) who will fill the vacant seat, thereby automatically creating an incumbent who potentially fits the ideals of the majority in the city council despite the voting preferences of that seat’s precinct. So, an appointee could fill a seat for up to a year’s time, which is a lot of time for a city council to pursue an agenda, especially with their newly appointed vote.
Proposition 8 (HJR 147 and SJR 54)
Ballot: The constitutional amendment repealing Section 7, Article IX, Texas Constitution, which relates to the creation of a hospital district in Hidalgo County.
Summary: While hospital districts in most counties in Texas are able to levy taxes at a capped rate of 75 cents per $100 valuation, Hidalgo County has been limited to a capped rate of 10 cents per $100 valuation due to an amendment to the Texas Constitution in 1960. Hidalgo County is the largest county in Texas without a hospital district, due in large part to their inability to collect enough tax funds to run a functional system. Proposition 8 will allow for the repeal of the restrictive 1960 amendment, and allow for the voters of Hidalgo County to create a hospital district and set their own tax rates if they feel doing so is in their county’s best interest.
Cost to Taxpayers: $108,921
Our Recommendation: Vote Yes
Prop 8 modernizes and brings the taxing ability of Hidalgo County to state standards. For over 50 years, they have been capped and unable to create a hospital district, while every other county in Texas was given the ability.
Proposition 9 (SJR 42)
Ballot: The constitutional amendment relating to expanding the types of sanctions that may be assessed against a judge or justice following a formal proceeding instituted by the State Commission on Judicial Conduct.
Summary: Currently, if a Texas judge does not comply with standards of conduct, the State Commission on Judicial Conduct (SCJC) has the ability to issue an order of public admonition, warning, reprimand, censure, or requirement that a judge or justice obtain additional training or education. Otherwise, if the offense goes to a formal proceeding, the Master presiding over the proceeding may only recommend censure, retirement or removal. Proposition 9 would expand the Master’s reach by also allowing him to issue a recommendation of public admonition, warning, reprimand, censure, or requirement that a judge or justice obtain additional training or education after a formal proceeding. This change is temporary and expires in 2016.
Cost to Taxpayers: $108,921
Our Recommendation: Vote No
Prop 9 actually dilutes the disciplinary powers of Master in judicial conduct proceeding. Currently, only the most serious offenses go to a formal hearing before a Master, which is why the only disciplinary options available are recommendations for censure, retirement or removal. Prop 9 would allow the Master to recommend much weaker actions, something the SCJC already has the power to do. This opens the door for political favoritism, allowing a Master to recommend much weaker punishments for the most serious of offenses if the offender is a friend or party member.
Thank you!!!
Are these REAL constitutional amendment proposals, or the fake ones that are on most ballots?
You’re welcome, Dude!
Of course there are unscrupulous salesmen out there that will conceal the pitfalls of RM's that are not suitable for everyone in order to close the deal. But "buyer beware" is my motto. We studied all the aspects thoroughly, and found that mom was a perfect candidate.
You are correct in that you cannot go negative on the equity in the home in a reverse mortgage - ever. That is how RM's are structured. The number-crunchers do their work, and the insurance company/lender assumes the calculated risk that you'll die, or move out, before the equity is completely depleted. If you live much longer than their tables estimate, you are getting free money.
That said, I think it is a very unwise decision to take out a loan (that's what a reverse mortgage is) in order to get INTO more debt. Stupid, inane, and suicidal. But people should still be allowed to do it, and suffer the consequences.
Thanks for the ping!
Plus, the estate may be passed on to heirs, but the house would not, as it would have to be sold unless the beneficiaries can pay off the remaining debt with cash. If they are forced to sell the “family home,” there is also the cost of selling, like commissions, fees, etc.
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My house (tax appraised at $260k) is paid for and I have a clear title. As I understand the reverse mortgage thing, I would be paid monthly for a portion of the equity... until I’m no longer living there (whether I move or die)... and the firm providing the reverse mortgage attains ownership of the house.
The house would then not be passed on to my daughter and she would not be responsible for any costs from my estate for the house. ....I welcome any corrections to my understanding.
I’m not inclined to do a reverse mortgage, as I don’t need the money now. I’d rather leave the property to my daughter and let her sell it or move in, as she wishes.
They attain ownership of the equity owed back. For example, if you have a $300,000 house and get a reverse mortgage for $150,000, they now have a lien on the house for $150,000 of its value plus whatever interest is owed. Whatever is left after that goes to the beneficiaries, but they would be forced to sell or pay up due to the reverse mortgage’s lien on the home.
Thanks for posting this list of amendments. First I’ve heard of them, as there are no TV ads or mailers about them. Seems our pols in Austin are pretty lax about getting the word out on the possible changes.
Or refi and pay off the bank
Not a problem.
Unfortunately, the way uninformed voters are and the way these amendments are worded on the ballot (not to mention how many of them there are), people’s default selection is usually YES. The same applies to bond and charter elections.
The government wouldn’t let us vote for something bad, right? LMAO
Anyone notice the $108,921 cost iteration for most of the amendments? ??
I think its the cost of publishing
Except Prop 6, the Water proposal is a couple billion dollars.
Prop 3 (HJR 133)
Ballot: The constitutional amendment to authorize a political subdivision of this state to extend the number of days that aircraft parts that are exempt from ad valorem taxation due to their location in this state for a temporary period may be located in this state for purposes of qualifying for the tax exemption.
Our Recommendation: Vote Yes
I cannot see how your vote YES can be made without some type of dog in this hunt.
When it comes to ANY TYPE OF TAXES, all citizens and business pay the same.....not special favors to some.
Bad point on the ping list.
Thanks for the ping!
Of the two summary/recommendation sites listed, they agree on Props 1 - 4, disagree on Prop 5 (Hardhatters - NO, Empower Texans - Yes), Agree on Prop 6, disagree on Props 7 - 9....FWIW.
Which two sites are you referring to?
Don’t forget to vote on TX Constitutional Amendments BTTT!
Of the two summary/recommendation sites listed, they agree on Props 1 - 4, disagree on Prop 5 (Hardhatters - NO, Empower Texans - Yes), Agree on Prop 6, disagree on Props 7 - 9....FWIW
Ok - sorry, found the link to Empower Texans up near the top.
Which guide do you prefer?
I’m going with the Hardhatters recommendations.
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