Getting Serious On Property TaxesSubmitted by MQSullivan on Wed, 04/23/2008 - 8:30pm.
A special House committee was formed this week to address the state's out-of-control property taxes. House Speaker Tom Craddick appointed some of the Legislature's strongest fiscal conservatives to the committee. After numerous false starts over the years, it's possible this committee might make headway on one of Texas' most vexing tax problems. Chairing the committee is John Otto and the vice-chair is taxpayer hero Ken Paxton. Also serving on the committee are taxpayer heroes and champions Gary Elkins, Phil King, Dan Flynn and Larry Taylor. State Rep. Wayne Christian, who heads the Texas Conservative Coalition, said that while "the Legislature has worked to make property taxes less burdensome" and used "billions of dollars in legislatively-appropriated property tax rate relief, local rates, appraisals, and bond debt continue to push property tax bills ever-higher." Bookmark/Search this post with: |
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Property taxes
You guys don't expect me to hold my breath do you?!
Not Recommended
Despite some reasons for optimism, that's not recommended!
Total overhaul...
The property tax needs total reform. It is my understanding that there is a CAD Board of Directors that is appointed by the taxing districts. The board of directors appoints a chief appraiser. The board of directors appoints the members of the appraisal review board (ARB). I am confident that the majority of the "people" do not realize the what this really means. The people that want our money to spend (the ISD, the cities etc etc appoint the people that control the assessed amounts that are taxed, thus they control the amount of taxes that we pay)
Total reform must be put into place
1. The Chief Appraiser needs to be elected by the people
2. The Board of Directors needs to be made up of elected leaders of the represented Taxing Districts
3. The ARB needs to be made up of people that are at arms length with the CAD and Taxing entities. They need to be trained by a completely third party on appraisal and need to be certified. The ARB hearings need to be held in a neutral location where the relationships with the Assessors are not cozy. Uneducated people that have a desire to be liked are easily influenced and this is what we have in the ARBs. They are given a crash course that is reinforced at the coffee pot of the CAD.
4. The appraisal must match the purchase price (I have had many instances where the district appraised and assessed the value much higher than the very recent purchased price)
5. The school district's ability to increase the tax rate must be removed.
6. There needs to be a cap on the increase as in 3% /year and a freeze on the assessed amount for people that live in their house long term as in never increase to more than 125% of the purchased price as long as the original owner owns the property. What is interesting is that I have a home that is assets at a certain amount that gives me over 20% equity in it, but the mortgage company still makes me pay PMI. So I am getting it from both ends.
7. The law must include that the district has a higher burden of the proof in proving their stated values. In my experience, if the CAD can show three relevant or irrelevant comps then the ARB supports the district, even when I had comps that support my position.
8. The Gross margin tax needs to be repealed. A small business owner can have a net loose and still be forced to come up with money to pay the State.
9. The Tax payer should be educated at the start of the ARB hearing that they are allowed to file for Binding Arbitration and the process associated with it. This would remind the ARB as well as the Tax payer.
10. Increase the sales tax to off set the perceived lost that the decrease in property tax cause.
11. Hold ISD accountable to their spending.