Bill to limit property taxes dead in Senate

Houston Chronicle Austin Bureau ^ | May 28, 2003 | ARMANDO VILLAFRANCA

[demkicker]

AUSTIN -- A tax relief bill appeared dead Wednesday in the Texas Senate, a victim of local taxing entities unwilling to lose millions of dollars in tax revenues the bill would have given back to Texas homeowners.

House Bill 3223, authored by state Rep. Dwayne Bohac, R-Houston, sought to limit annual property appraisal increases to 5 percent instead of the current 10 percent.

The bill passed the Texas House earlier this month by a unanimous vote and was not expected to face much, if any, opposition on the Senate floor.

Wednesday was the deadline for the Senate to consider any bills or joint resolutions on final reading.

But a majority of 25 senators told Lt. Gov. David Dewhurst they did not want the bill to come to a vote, effectively killing it, according to state Sen. Kyle Janek, R-Houston, the bill's sponsor in the Senate.

A last-minute attempt was being made late Wednesday to revive the bill, but supporters said it appeared unlikely that they could garner the votes to bring the bill back up.

"Kyle and I are getting almost no support," said state Sen. Jon Lindsay, R-Houston, who was asked by Dewhurst to poll senators in an attempt to determine if there was sufficient support for the bill.

Janek said senators were pressured by city and county governments who argued the bill would bankrupt them.

The bill would cut in half the current 10 percent annual cap on homestead appraisals. The bill also limited annual appraisal increases to 5 percent on commercial property and multifamily property such as apartments.

Currently, there is no cap on how much the appraisals on businesses or apartments can increase in a year.

The limit set in this bill, however, would not apply to property appraisals for taxes collected by public school districts and junior colleges. Mineral taxes also would be exempt from the 5 percent cap.

Though the bulk of tax revenues at the local level are generated by school taxes, local governments had a lot at stake because the bill would have forced them to raise taxes to make up for the loss in property value increases.

"They didn't want to give up their guaranteed tax increase, and that's a shame," Bohac said. "What that means is that millions of taxpayers lose."

Bohac said the bill would have controlled the rate of government spending.

"These local taxing entities have to learn to live within their means just like a Texas household does, and they don't want us to do anything that limits their ability to spend as much money as they want to spend," he said.

The bill's future was never assured as it moved through the legislative process. In its various incarnations, the bill seemed to teeter on life support only to be revived by last-minute compromises.

The proposal would have required a vote on a constitutional amendment in a statewide referendum in September.

"I'm confident that this bill will do what we want it to do and this is reduce skyrocketing appraisals without placing an undue burden on taxing districts," Bohac said earlier Wednesday.

Harris County Tax Assessor-Collector Paul Bettencourt has said the bill would have affected more than 1 million homeowners in Harris County but would probably initially have affected about 400,000 homeowners in its first year in 2004.

Property taxes paid by Harris County homeowners have shot up by 73 percent since 1997, Bettencourt said. Twenty years ago, money paid by homeowners represented 31 percent of the state's entire tax rolls. Last year, he said, homeowners made up 48.3 percent.

In Houston, he said, multifamily property values such as apartments have risen 75 percent in the past five years.

The bill had widespread support from homeowners, including a groundswell of support from Houston homeowners, who attended a March 13 hearing when a similar version of the bill was being considered by the Local Government Ways and Means Committee.

That bill, House Bill 474, co-authored by state Rep. Martha Wong, R-Houston, called for a 5 percent cap on homestead appraisals only. Bohac submitted an alternative bill that included multifamily and commercial property.

The bill seemed dead when it appeared before the committee April 28 and members voted against it. But the bill was revived with a compromise that exempted school districts from the 5 percent cap.

The bill's chief opposition has come from law firms that represent clients in disputes over property appraisals and county and city governments who feared the cap would result in less tax revenues.

[Flyer]

Okay, try this. . .

Wal-Mart sells a gizmo for $1.00.

The Gizmo Appraisal District says the Gizmo has a value of $1.25 and the tax will be figured on that amount.

Just as Wal-Mart sets the price it sells at, I can set the price for my house. But, it is taxed at the value the unelected HCAD determines.

[Redbob]

Who are the 25?

[Redbob]

Here in Denton County, where the county budget is up 20% over last year, property values have "coincidentally" jumped by 20%!

The City of Denton, meanwhile, is about to open a multi-million-dollar Water (amusement) Park, paid for jointly by the County and the Denton school district.

Oddly enough, Denton ISD will be cutting bus service to 900 students next fall due to a $300,000 budget shortfall.
Wonder where that money went...

[FreePaul]

Where in the Constitution is the Federal Government given the right to set speed limits, blood alcohol limits, etc. They are doing it by refusing to return tax money to states that don't comply. They could easily refuse to give money to states that have a property tax. None of the above is the right thing to do and shouldn't be allowed under the Constitution but it is done or could be done.

[Grampa Dave]

Can you bring propositions up for a vote in Texas?

If so you need to copy California's prop 13 which puts a severe limit on the property taxes that can be levied each year.

Uncontrolled Property Tax increases are like a printing press for local tax and spend governments. Teachers, firemen and police want a double digit raise, no problem just increase the property taxes. Ten thousand illegal aliens moving in each month on welfare and cramming the schools, not problem just increase the property taxes.

Prop 13 has saved the house and bank accounts of many of us since we made it law via Prop 13.

[Redbob]

Sorry sport, but I had the misfortune of living in Michigan during the period when they "cut" property taxes.
The local taxes went up by the same amount (or more) that the state property taxes went down. Net result in my tax bill: it went UP!

Besides, Michigan has a state income tax; it was 4.4% at that time, if memory serves. So comparing us to them is hardly realistic.

What we need in Texas is a higher sales tax; that way, EVERYONE pays a tax, and the illegals don't get a free ride.

[MeekOneGOP]

Please let me know if you want ON or OFF my Texas ping list!. . .don't be shy.
No, you don't HAVE to be a Texan to get on this list!

[MeekOneGOP]

Good, I hope so ! Then after they pass the property tax limit, bring up the redistricting bill and lock the doors up. Oh, but, if the 'RATS walk, we can STILL PASS it !! Yee Haa !!

[FixitGuy]

Property taxes anger me beyond belief. They are about as unconstitutional as taxing ones INCOME!

Who ever heard of such a criminal idea?

Buit what a great Ponzi scheme...this way each time the money changes hands, the gummint adds their tax charge!

No new money...just new income, and MORE TAX!

[padfoot_lover]

Who are the 25?

The Lt. Governor said this afternoon on the radio it was more like 20, and he said that Janek, Lindsay, Williams and one other senator from the Houston area were NOT any of the signatures; otherwise he would not say who these turncoat senators were. He was also vague as to whether it was an actual letter or just a piece of paper with signatures on it. I know that CLOUT is going to try to get the paper/letter through the Open Records Act so we can get these cowards' names. These turncoats told Janek, Lindsay, and Lt. Gov. Dewhurst on Monday that they would sign it and then they changed their minds after getting calls from lobbyists. The Lt. Governor could not call a vote without knowing they had the ayes. It's pathetic.

Anyway, I'll be posting their names on the local board as soon as I hear something; no matter how long it takes to get that list of names!

Dewhurst did say he was trying to get school taxes cut by 50% and they would be doing something by October. We need something now, though!

[Dog Gone]

Can you bring propositions up for a vote in Texas?

Nope. We have no Initiative (props) or Referendum in Texas. Both parties appear to be afraid of giving that power to the voters.

I think the only way that could ever happen is if a Governor ran on that as a campaign plank, and it scared the legislature into relinquishing some of their power.

[bradactor]

Guys I am a member of clout and listened to Dan's show. This is the email he just sent me:
Dear C.L.O.U.T. If you missed the show today, we had a surprise caller. Lt. Gov Dewhurst called and talked for almost 30 minutes. Jon will replay in the morning. He says he is with us and will work for appraisal cap relief as part of his tax cut bill in special session. I think we have his attention to our issue. He said there was nothing he could do about the vote last night. He admitted that about 20 Senators said they would not vote for it and send him a note. He can't call for a vote unless he has 21 votes. Many people were given cloudy information last night including us and all of the newspapers. It is still cloudy. However, I believe he did fight for us and I also believe some Senators tried to make him the goat. I am encouraged that he toook the time to speak to us and give us his support. As I said earlier today in my first e-mail, we will win on the issue. Now your fax to him 512 463 0677 should say thank you for standing tall and telling us the truth on what happened and that we are counting on you to get this done in special session! Dan

[Diddle E. Squat]

Why is that more and more the words 'special session' make me smile?

This is going to be the summer from hell for the Democrats...

[oldtimer]

You are right. Raise the sales tax.

But the real tragedy is trying the educate the un-educatible, and bi-lingual education.

Bi-lingual education is the stupidest thing that ever happened in Texas and elsewhere. It was designed to create more rat voters, but also produced fairly well educated brick layers.

This Country is a disaster because of the NEA, TEA, libs in Government, and other general limp wrists who want to re-write the history books.

[lewislynn]

No government will voluntarily lower property taxes in this country.

Here in California, my property was re-assessed every year and taxes were reduced accordingly (by law) during the real estate slump of the early 90's. They have since gone back up accordingly with the real estate boom.

California's property tax is 1% of the assessed value or 1% of the purchase price for newly purchased property.

[padfoot_lover]

Oh, and on top of finding out who those 20 or so senators were, we need to find out what cities, municipalities, and other groups who lobbied against this bill were. I know that mayor Lee P. Brown actually sent two lobbyists to Ausin to fight this without running it by city council first. (Thank God for term limits; he's gone soon). Really low to use taxpayer money to "do it" to the taxpayers, don't you think?

[PetroniDE]

I am a member of C.L.O.U.T. too. I will send fresh facsimiles to Governor Perry and Lt. Governor Dewhurst tomorrow.

If C.L.O.U.T. plans some event in Austin, I'm in.

[Humidston]

BUMP for the night shift!

[demkicker]

Who are the 25?

We don't know yet. Dan Patrick said on KSEV Thursday that he's calling the govener for an investigation to be done by the Texas Rangers! If there was a letter, which we believe there was, we'll find out.

This issue will not die or fade away. People demand to know who made committments in support of this bill, but got pressured to change their minds and didn't allow the bill to go to the floor for an up or down vote. They're yellow bellys who THINK they can fend "support" for the bill, but in reality, they killed it. We'll know soon enough. Tick, tock....

[demkicker]

Some of you may not be from Texas, so you can ignore my request if you aren't. For those of you who are Texans, PLEASE be sure to join C.L.O.U.T. (Citizens Lowering Our Unfair Taxes), if you haven't already done so. Currently, there are over 10,000 members and this organization is our best hope to get bonafide property tax reform. WE must increase our membership statewide. Please be proactive and tell all your friends and family about this fine organization. It doesn't matter if they rent or own their homes. Everyone is affected by the runaway property taxes and we all need relief.

Dan Patrick announced Thursday that we got licked in round one, but we learned some valuable lessons. We are wiser for this experience and are prepared to play with the big boys next time. Plans are underway for C.L.O.U.T. to hire a full time lobbiest. Joining doesn't cost anything, but donations will be requested to pay for the representation we need.

Please sign up and join here