[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.

The appraisal cap in Texas is currently at 10% per year or 30% over 3 years and it is killing most of us. My home's appraised value has increased 72% since 1999 and I protest mine every year. If you neighbor invests a bunch of money in his house and then sells it, everybody in the area gets re-appraised.

My daugher's sister-in-law and her husband bought a house in the Heights - one of those knock downs and re-built a new one. The first year their taxes stayed the same as the house they tore down to build the new one. This year this new couple are facing a $20,000 per year tax bill! They built the home themselves to save money but the appraisal district did not value the home at what they built it for, they valued it at what some appraisor sitting in an office said it should be worth. Now these kids, like many others are faced with having to sell their home because they can't afford the taxes. I'll only be able to stay in my own home another year or two because my taxes are approaching $1,000 per month.

Any way I can talk you out of voting for Carol Keaton Rylander Strayhorn what's her name? She's a loud mouth former Democrat opportunist who only became a republican when it became obvious that the only way to get elected to office was to change parties.

Talk to someone who was in Austin when she was mayor there. If she's elected it won't be good. I find her as obnoxious as Ann Richards.

Ah, wonderful architecture!

Isn't it wonderful that our tax dollars can go towards $100 million High Schools (like Round Rock tried to build but got shot down in latest bond election).

I am sure the kids are appreciating all that expenditure.
I'm sure it is in fact raising their IQs and making them think "You know, I was going to cut gym, but the gym is such a beautiful work of well-appointed construction ... I'm going to stay."

Yeah, right.

Gack!

>>>"she's a loud mouth former Democrat opportunist who only became a republican when it became obvious that the only way to get elected to office was to change parties.

Talk to someone who was in Austin when she was mayor there. If she's elected it won't be good. I find her as obnoxious as Ann Richards"<<<

Tex do me a favor, Tell me what you really feel. I get the feeling that you are holding back. ;^}

On the serious side I think Perry is the same and who else is running?
Hope something changes, if not and Perry is Re-Elected, I hope he is shot down on every one of his Mafia schemes, the Land Grabs, the Mineral Grabs, the Toll Roads for Spain, his Major kickbacks from Insurance (via regulations), Light Rail, Fluoride, Stoplight Camera Companies and on and on.
Mostly I hope that after he is out of office his buddies in the Press turn on him and expose him for the Charlatan that he is.

"But no way are private schools or homeschools equipped now to educate the masses. Selected and willing kids, yes, but not all. "

Apparently not.

We sent our kids to a $3000 a year school, that enabled them to learn to read, write cursive in 1st grade (something public schools dont do), and learn math and Bible in ways the public schools wont touch. The school is cramped and the teachers are dedicated and teach only the basics. No fancy labs, small but good library. P.E. is a field out back.

My wife is checking out the public schools, and getting shocked at the manicured sprnkler-system lawns and the expensive architecture. Wow, what a great and well-funded system they have, at $8,000 a child! ... I just hope they dont forget about the children along the way.

Despite how much better the buildings are, we KNOW that a public school will be less educational for our children than the private school that costs half as much. We've seen the dumbed down textbooks and the mediocre scorecards of some of the schools that cost so much.

The real solution is for us to give every parent a voucher for education. Pretty soon the overhead will come down and the quality will go up.

The appraisal appeal process is a monster, and it takes months. The valuation loophole needs to be closed.

~~~~~~~~~~~~~~

We just closed one in Cass County. The regional appraisal district just tripled the taxes on my timber land (I'm retired on my mother's portion of the old family farm).

We confronted the appraisal district's leader in a recent commissioners court meeting. She claimed that the State (TX, of course) had mandated that she re-evaluate timber land based on a "soil-type productivity scale". She also admitted that she had used an outdated and notably inaccurate soil map, although the State had been promising her a new one for several years.

After a big timber land owner railed on her and, finally threatened (promised) to have her fired, I offered her an out:

"A State mandate for which they haven't yet supplied the tools is indefensible. Ignore it."

That meeting was on the 13th. We just received new tax bills -- with the valuation back where it should be!!! :-)

Just goes to show that citizens can "fight city hall"...

"And Cypress-Fairbanks ISD has a "sports complex" under construction, scheduled for completion in 2006. A tidy little $28 million down the crapper."

"Which the residents voted for in a bond election. What is the problem?"

The problem is these 'elections' are about as examplary as Iran's latest election in showcasing democracy.

If they are anything like the Austin ISD and Round Rock ISD bond elections, they do these things:
1. They pick an election date that is very obscure. turnout is under 10% typically, and may get under 5%. Then they target the 'pro' voters to grease the wheels for a yes vote.
(Austin pulled the same stunt when they made a special election date for their hospital tax district proposal.)
2. They set up early voting locations *in schools*, all the more easy to get the clients voting for it.
3. They use taxpayer money to 'explain' the election ("It's for the children"), and in effect campaign for it with flyers
(With Austin they pulled this stunt for their commuter rail proposal). Unless there is a grassroots opposition, the voters get only one side of the story ("do you want kids learning in schools with leaky roofs? Then support our $1 billion renovation program for schools")
4. If the voters say 'no', they take it as a 'maybe', and give it another crack until the voters make the 'right' decision. (For example, Round Rock's bond election was turned down, but they are going back with something later in the year.)

Do steps 1-4 and you can get a 'yes' for anything.

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.
Cigarette smokers currently bear too much of the tax burden. It is an antiquated notion, unrealistic and unfair, that those who smoke cigarettes must finance public schools for everyone who happens to breathe Texas air.

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

My kids are grown, using your logic I should no longer pay taxes.

Property taxes should be eliminated, and we should increase the sales tax and close all loopholes in relationship to service industries. The schools should be managed by private enterprise and held accountable for expenditures.

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

My kids are grown, using your logic I should no longer pay taxes.

Instead of calling it a tax cut he should just admit it's a tax shift.. no taxes are being cut they are just collected by other means... too bad Our Government exempted themselves from the RICO act.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.