To Members of the Interim Select Committee on Property Tax Relief and Appraisal Reform:
I am writing on behalf of Texas homeowners to thank you for your efforts in the review, consideration and implementation of changes to the current antiquated, oppressive and infantilizing property tax & appraisal system, which has failed homeowners across the state.
As you know, more homes and owners are in foreclosure than ever in the state's history. Part of the reason is that the state has diverted its own responsibility for financing public education onto local governments, which in turn have diverted that obligation onto their county homeowners. It is a system that is doomed for failure, while ensuring that more residents will lose their homes during the next several years unless the legislature make some long-awaited and long-needed changes to the system.
There are 3 main methods used by counties to raise property taxes and to increase their tax revenue:
- increase tax rate
- raise appraisal values
- generate various bond packages.
Each one of the above will increase property taxes.
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While Texas law permits districts the ability to increase property taxes at least once every 3 years, most districts throughout the state increase at least one of the methods listed above EVERY year.
Another factor that overburdens homeowners includes the sky-high cost of home insurance premiums, which are the highest than anywhere else in the nation. Another costly issue is the atmospheric prices of home energy: electricity, oil, gas.
Other factors include in general the ever-increasing costs of daily living expenses that have added to the financial woes of Texas homeowners.
It is at the point where many homeowners no longer can afford their monthly mortgage payments.
So, what can and should be done to relieve the financial pressures shouldered by homeowners?
1) Firstly, the state must reassume its Constitutional responsibility to provide the revenue for public education. In doing so, the state must relieve local governments and homeowners from that burden and arrive at new and fairer alternative sources of tax revenue.
2) In addition, one of the most detrimental issues of the current oppressive property tax & appraisal system is the main fact that property taxes are tied to appraisal values. There is no GOOD reason that increased appraisal values should automatically raise property taxes. It merely is the easiest way for local governments to raise tax revenue for their school districts.
The reason high property taxes have become such an urgent issue is because legislators have NOT really improved the problem; they merely have offered some minor and temporary relief. Every year property taxes continue to increase and counter the temporary relief previously applied by lawmakers. REAL property tax relief is needed so that the issue truly is resolved and not just deterred for a short time.
In conclusion, until resolution of these 2 issues are approved and implemented the financial oppression of Texas homeowners will continue.
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Peter Stern
Property Tax & Appraisal Reform: Myth or Reality?
