[Texas] Governor proposes largest property tax cut in history

Today, Governor Perry proposed a solution to the recent tax trials of the Texas legislature; a plan which will deliver the largest property tax cut in history to the hardworking people of Texas.

Perry’s plan, if adopted, will result in a net Tax Cut of $300 million for the people of Texas, while providing a solution to the school finance reform dilemma.The measure will serve taxpayers, while providing historic funding increase for schools.

In order to facilitate the tax cut, Perry has proposed a close in franchise tax loopholes, leading to a more widely shouldered business tax. In addition, his plan would increase the sales tax rate by 7/10 of a percent – to 6.95%, and increase the cigarette tax by $1.

Perry’s plan, which may prove to represent a significant compromise between earlier House and Senate proposals:

Increases homestead exemption $7,500 starting in 2007 (from $15,000 to $22,500)
Cuts property tax rate to $1.20 by 2007 (the equivalent of $1.15 with $7,500 increase in homestead exemption).
Caps rate at $1.05 by 2010 (equivalent of $1.00 with $7,500 homestead exemption.)
Consumer/Business Tax ratio remains essentially unchanged
Gives teachers $1,500 pay raise
Textbooks in warehouses go the classroom
Funds Reforms and education technology
Truth in Taxation rollback provisions
Limits local enrichment to 2¢ per year, capped at 12¢

With the Texas Supreme Court decision on several key school finance cases on the horizon, the manner in which the Texas legislature addresses the current problems in the system could control the fate of millions of Texas school children.Perry’s plan, which comes on the heels of a three-week legislative break, may provide a good starting point for successful negotiations between House and Senate leaders.

If there were . . .

1) less exemptions and special taxing classes
2) a more accurate appraisal process
3) accountability in spending (anyone take a look at where and how the local school districts are spending money, i.e. football stadiums)
4) tax rollbacks where the tax rate has to roll back each year as much as the average appraisal rates go up
5) truth in taxation whereby any raise in local tax rates has to be clearly explained to voters and needs a supermajority of local officials to pass

THEN, we might have a chance of rational taxation

Every property owner in Texas already pays property taxes, but not every resident of Texas owns property.

Property owners currently bear too much of the tax burden. It is an antiquated notion, unrealistic and unfair, that those who own real property must finance public schools for everyone who happens to breathe Texas air.

How to "broaden the base"? Transfer some of the income now derived from property owners to ALL residents of the state. There are plenty of other ways to tax that involve all who benefit from services.

That's right, you're not the only one to notice that this is a tax non-cut... it's just moving the tax from real property to sales and cigarette taxes. That sales tax increase from 6.25% to 6.95% can be increased by 2 cents on the dollar by local authorities to fund local projects (e.g. roads, stadiums, other local yokel pet projects), meaning that it will make most Texans' sales tax 8.95%. The only good thing about this is that there's still no state income tax in Texas (yet).

>>>"I'd prefer to have it that only parents pay for the services. Why should I, without kids, be saddled with this?<<<

Get the Government out of the Education Business and we can achieve your Goal! The Government is good at spreading MISERY thin so it isn't as objectionable.

Can you IMAGINE the quality of Education that Parents would DEMAND if they were the only ones paying for it? You could kiss those Teacher Unions GOODBYE, the Monuments to politicians that house the Education process would disappear as well.

>>>"You are right: it is the greedy local governments that run up the property taxes, not the state. But Texans don't get it, do they?<<<

It is OUR fault, last local Elections garnered about 2% participation and that 2% was basically the families and employees of the local "Family Business" namely City Hall.

For example, in our little Town, the Mayor, Chief of Police, Fire Department Chief and City Planner are related to each other at minimum by Marriage but mostly blood and are into the second generation, in their minds, City Government is their "Family Business" and there is no unemployment in their Family.

(I wouldn't think they would ever get a Ticket for not wearing their seat belts either) "just my personal hot button observation"

I don't know who said it but it is True "We get the Government that we deserve"

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