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Senate proposes to make our tax system more broken

That’s what this will surely do.

The Texas Senate on Tuesday approved a controversial bill that seeks to curb the growth in property taxes that local government agencies like cities and counties levy on landowners.

Senate Bill 2, which passed in an 18-12 vote, could require taxing entities to hold an election if the amount of operating and maintenance funds they plan to collect from property taxes is, in general, 5 percent more than what they took in the previous year.

State Sen. Paul Bettencourt’s bill has split scores of Texas homeowners and the local officials that they elect. Landowners and some government officials say the bill is needed to slow the increase in property tax bills they must pay every year.

Bettencourt, R-Houston, said from the Senate floor Tuesday that many homeowners are seeing increases of 8 percent to 10 percent in what they pay in property taxes each year. He said commercial property owners are repeatedly seeing 15 percent to 20 percent hikes.

“I for one don’t want to continue to climb the ladder above states like Illinois and New York,” Bettencourt said.

But many local and state officials say the Legislature is sidestepping the real issue that leads to rising tax bills: school districts levying more in property taxes because lawmakers won’t change the state’s system for funding education. State Sen. Lois Kolkhorst, R-Brenham, conceded that point on Tuesday.

“It’s a fine balance between respecting our local elected officials and having an understanding that we still have a lot of work to do,” she said.

Critics of the bill say it glosses over the fact that an election could be triggered when the actual tax rate remains flat because rising property values play a major role in calculating the election trigger. Many local officials also say the bill would threaten their ability to hire police officers, build new parks and fill potholes.

Many police and fire chiefs from across the state testified against the bill last week.

“What do I tell them?,” State Sen. Carlos Uresti, D-San Antonio, said Tuesday morning.

“Vote against the people who voted for this turd” would be my advice. One of the good things that has come out of the HISD recapture saga is the increased awareness of the Legislature’s addiction to local property tax revenues as a way of not only easing their own financial responsibilities, but also providing the godsend of being able to blame the whole mess on the local officials who have been left holding the bag. It just doesn’t get any sweeter than that. At least now some people have begun to recognize the con job for what it is, though it’s a long way from becoming a rallying cry. As with many things, we’ll see what happens with this in the House.

One more thing:

Bill proponents say that the automatic election would allow for more local control because it puts more power in the hands of voters.

What’s that you say? Local control?

As local control battles rage at the Texas Capitol, Gov. Greg Abbott is voicing support for a much more sweeping approach to the issues that have captured headlines.

“As opposed to the state having to take multiple rifle-shot approaches at overriding local regulations, I think a broad-based law by the state of Texas that says across the board, the state is going to preempt local regulations, is a superior approach,” Abbott said Tuesday during a Q-and-A session hosted by the Texas Conservative Coalition Research Institute, an Austin-based think tank.

Such an approach, Abbott added, “makes it more simple, more elegant, but more importantly, provides greater advance notice to businesses and to individuals that you’re going to have the certainty to run your lives.”

Abbott made the remarks in response to a moderator’s question about legislation this session that would “prohibit any local ordinance from exceeding the standard set by the state.”

In other words, local control when we let you have it, or make you have it, but not when we don’t. The Observer has more.

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One Comment

  1. Bill Daniels says:

    My property taxes have been going up 10% a year for several years now. That’s compounded. So, if I owed $ 100 in year one, then $ 110 in year two, then $ 121 in year three, etc. That’s unsustainable for many people in the long run who will end up being forced to sell their homes for taxes, and as stated, it’s even worse for business property….just ask me. There is no mercy or quarter given in terms of percentage year over year increases.

    This bill just limits the yearly increase to 5%. It just lowers the rate of INCREASE, it does nothing to actually provide tax relief, nothing to lower peoples’ already inflated bills. Is there anyone here who routinely makes 10% more money each year? I ask, because that’s the minimum it would take just to tread water here.

    This reminds me a lot of typical government. When they say they are going to reduce spending, they mean they are reducing the INCREASE in spending, not actually spending less. That’s what’s happening here. If the schools, police, fire, etc. can’t live on a guaranteed 5% increase each year, then, well, they should learn, because most citizens would be thrilled with a 5% increase in income, which most are not getting.

    I absolutely support the bill, although it’s too little, too late for many, and doesn’t provide any actual relief, just slows future pain down a little bit.