Posted on 09/09/2006 8:40:20 AM PDT by Dubya
AUSTIN -- Republican Gov. Rick Perry said Friday that the one-third reduction in property taxes he helped push through the Legislature this spring could evaporate before Texans ever see it unless lawmakers rein in runaway increases in local property appraisals.
"The downside, if we do not get ... some protections against these spiraling appraisals, is that the property tax relief that they were rightfully given this last year will slowly, if not quickly, be gobbled up," Perry said after giving a pep talk at the opening meeting of his special panel on property appraisal.
The blue-ribbon panel, headed by former Texas Republican Party Chairman Tom Pauken, will conduct hearings in every region of the state on how to keep rising appraisals from leading to larger tax bills even when the property tax rate remains flat or is lowered. A hearing in Dallas is scheduled for Nov. 16. The commission is expected to make recommendations to the Legislature in time for the session that begins in January.
Perry, who is running for re-election in November, is taking heat from some Republican conservatives for not bringing appraisals under control.
Independent candidate Kinky Friedman called this week for a 3 percent annual cap on increases in property appraisals, which are set by county appraisal districts. The present cap is 10 percent. Friedman called the process "a shell game" that allows elected officials to reap the benefit of raising taxes without having to vote for a tax increase.
Two years ago, Perry called for capping appraisal increases at 5 percent annually, but the Legislature balked, in large measure because local elected leaders complained that such a move would be too great an exercise of state power and would impede their own ability to generate revenue for local government operations.
Perry acknowledged that the special panel does not have an easy task.
"I wish I could tell you it would be a piece of cake, but it's not," he said. Later, Perry suggested that Friedman's suggestion was overly simplistic.
"He needs to think these things through," Perry said.
With state leaders facing a Texas Supreme Court order to overhaul the way the state pays for public education, Perry and legislative leaders pushed through a plan that calls for cutting local school property taxes by one-third over the next two years. The cut is to be offset by a new tax on businesses and a $1 per pack increase in the tax on cigarettes.
Critics of the plan have predicted that the tax savings will never be realized because of rising appraisals.
A spokeswoman for Chris Bell, the Democratic nominee, said appraisal caps should not be used to tie the hands of local elected officials.
Independent candidate Carol Keeton Strayhorn called Perry's appointment of the appraisal panel an election-year gimmick. She said that property appraisals should be brought under control, but that local leaders bear the responsibility.
She also disputed Perry's assertion that an average Texas homeowner would realize a $2,000 reduction in taxes once the plan is fully phased in.
"The governor promised you a $2,000 property tax cut, but on October 1 don't go running to the mailbox because it won't be there," Strayhorn said during a campaign appearance in Austin.
Perry said that if appraisals are controlled, Texans would see a record property tax cut. John Moritz, 512-476-4294 jmoritz@star-telegram.com
She also disputed Perry's assertion that an average Texas homeowner would realize a $2,000 reduction in taxes once the plan is fully phased in.
"The governor promised you a $2,000 property tax cut, but on October 1 don't go running to the mailbox because it won't be there," Strayhorn said during a campaign appearance in Austin.
Land-value tax, Perry. Implement a land-value tax and abolish the property tax altogether.
I Agree.
Better than that, appeal the appraisal hike. I did, and I got mine REDUCED by $30,000.oo. You don't have to put up with their B.S.
BS!!! It would require local elected leaders to be upfront on revenue increases and raise taxes. Hiding behind appraisal increases and saying "we didn't raise your taxes" is chicken bleep.
Attn: tax slaves in Taxus - the annual tax incease due to property appraisals by the tax assessor in California is 0% - your property is never reappraised if it is unchanged. Under Proposition 13, the tax rate is capped at 1% of the sales price plus a 2% maximum inflation adjustment. Homeowners in California do not have to pay "rent" increases to the government every time the politicians here want more money from the local walking ATM machines - all tax increases must be put to a vote. See www.hjta. org for more details.
At least Texans aren't state income tax slaves.
Hey....we new jersyans under the corrzine regime....resemble that remark!!!!
As a life long Republican in Texas, I cannot support Perry this time.
His refusal to support the property tax cap at 5%, coupled with this tax increase on business in the name of relief for homeowners is too much of a lie.
As shown here in this article, they are already talking about whatever relief we homeowners got (in exchange for huge increases on our businesses) will be lost as the local appraisals skyrocket.
Bottom line - No amount is EVER enough for these politicians.
Until we get some politicians that wont stand by while spending routinely increases faster than growth and inflation, they will continue to return to the well (you & me)year after year.
It's the spending, stupid!!!
He acted like he supported it, but wouldnt do a damn thing to help ram it through.
Awww, some local yokels 'balked' so Perry caved...
THAT'S leadership???
Amen to your comment...
True - but the property tax, mortgage interest, and my business expenses are deductible - so I pay very little CA state income tax. California is far from perfect - it may soon be renamed as Aztlan or Northern Mexico.
The real problem for Taxans is that when you retire, and have less money coming in, your property taxes will continue to increase until you are forced out of your retirement home. The income tax in CA does not hit retirees hard since their income drops when they stop working. Retirees losing their home to the tax collector used to happen in CA until 1978 when Prop 13 passed - but no more. Now you can retire in CA and never worry about skyrocketing and unpredictable property taxes forcing you into the street. The one good thing about California (besides the weather) is Proposition 13 - if Texas passed a similar law, your wallets would be safe from the tax assessor. There is no need to reinvent the wheel - passing a Proposition 13 in Texas would save you from the insatiable greed for more taxes of the school unions, politicians, and tax collectors. Remember, "those who would be free (of the tax collector), themselves must strike the blow." (Lord Byron)
I can predict how much my property tax will be at any given year in the future for as long as I own my house (current tax plus 2% per year) with no reassessment - what a relief!
I don't worry about the spending in California - I worry about preventing the politicians from getting access to my wallet. Once the politicians are cut off from your pockets (via Prop 13 and Prop 218 in California), you can sleep at night without worrying about taxes. Once the tax blood is cut off to the political vampires, the spending will eventually stop.
In the final analysis, it is better for the city or school district to go bankrupt because they won't limit the salaries and golden pensions than for you to go bankrupt trying to pay the skyrocketing taxes.
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