Every property owner in Texas already pays property taxes.
And, increasing the exemption effectively lowers the rate.
BROADEN THE BASE
-- Keep the homestead exemption where it is -- ideally, eliminate the homestead exemption.
-- Eliminate the appraisal cap.
Yes, increasing the exemption lowers the average rate. Reagan eliminated high exemptions to cut the rate.
Assume there are two tax systems:
System 1. $50,000 exemption; 50% taxation thereafter.
System 2. No exemption; 25% flat rate.
If you earn $100,000, you pay the same average rate -- 25%. But who has more incentive to earn the 100,001st dollar? The systems are not the same. The same goes for property taxes. Gov. Perry is taking us in the wrong direction.
After having fought absurd apprasals the past five years I'm personally ready for a cap, I've spent more time talking to the apprasal board than I have filing income tax forms and I've gotten just about as far (turned down five out of five even with professional apprasals to back up my claim).
They were limited on how much they could raise the rate so they just jacked up the apprasal and, as best as I can tell, they just made it up out of thin air.
Unlimited valuation has been a sure invitation to robbery.
Broaden the tax base by eliminating the damn senior tax freeze. Senior lobbyists from the Texas Silver Haired Legislature have been riding around the state for the past 18 months getting town after town to exempt seniors (over 65) from any increase in CITY property taxes for services they use every day. (The seniors are already exempt from SCHOOL property taxes.)
They have spawned a permanent intergenerational socialism that will increasingly narrow the tax base as the wave of boomers reach 65 in the coming decade. The senior leadership is mighty proud of this and notched their belt (web site) regularly at: http://www.netarrantseniors.net/Freeze%20Status%20in%20Tarrant%20County%20&%20Elsewhere.htm
Seniors are using clout to push for tax breaks
http://www.dfw.com/mld/dfw/news/local/11899055.htm?template=contentModules/printstory.jsp
Wed, Jun. 15, 2005 in the Fort Worth Star-Telegram
Cities divided by tax freeze
http://www.dfw.com/mld/dfw/news/local/states/texas/northeast/9531151.htm?template=contentModules/printstory.jsp
August 29, 2004 in the Fort Worth Star-Telegram
Sending the wrong message in Arlington
Fort Worth Star-Telegram Letter to Editor Jan 31, 2005
Arlington voters will decide Saturday whether one group of people -- seniors -- should have further increases in their city property taxes paid for by everybody else.
It's been said that our form of government is in danger when one group realizes that it can vote itself money from the public treasury at the expense of others. The senior tax freeze is a classic case of this.
It's also a sad commentary on seniors when they vote for local government to extract higher taxes from their children and grandchildren to pay their way. How can they face their own flesh and blood who are struggling to raise families and pay education costs?
With the $60,000 tax exemption that seniors receive in Arlington, those who live in small to midsize houses pay little in city taxes.
In fact, 22 percent of those currently receiving the over-65 exemption pay no city property taxes, and 17 percent pay less than $100 per year.
The net result is that a senior tax freeze amounts to a significant tax break for the wealthier homeowners.
Passing a tax freeze for seniors would have the unintended consequence of allowing seniors to vote for city improvements (police and fire protection, ambulance service, libraries, senior centers, roads, water and sewer) without facing any extra taxes.
This allows a steadily growing portion of the population to vote to raise taxes on everybody else while they enjoy the benefits.
I urge Arlington voters to think about the consequences of a senior tax freeze and the message that it will send to your children and grandchildren
Sounds like you've got some high-priced commercial property you'd like some practical relief on. And you want the homeowners to relieve you.