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Old 05-01-2015, 02:03 PM
 
Location: Austin, TX
171 posts, read 156,898 times
Reputation: 95

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I noticed you conveniently went right past the quote on budget guidance: ""Earlier this year, City Manager Marc Ott began the budget planning process by directing City staff to develop a budget that focused on affordability and did not increase the property tax rate." The planning process for the budget starts well before setting any rates. They make assumptions on what direction appraisals are going and then they work the budget. After appraisals come out they validate those assumptions and if they are wrong they can (1) raise the rates to correspond to a budget they've not yet passed; or (2) they lower the budget to be more in line with appraisals insofar as they inform the budget.

What's missing from this is the income taxes only inform part of the budget. There are also assumptions made on other revenue sources (sales taxes, and various fees, for example).
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Old 05-01-2015, 03:56 PM
 
Location: Central Texas
13,720 posts, read 25,463,523 times
Reputation: 9216
Quote:
Originally Posted by Ariel_Austin View Post
Appraisals inform the budget from the year prior. We could argue if it's the chicken or the egg but since appraisals do have to come from a defensible source, the chicken is the appraisal and the budget is the egg. Furthermore, the city budget (assuming CoA) only impacts a portion of one's property taxes. The largest portions are the school district and MUD (if applicable).

If everyone's appraisal was cut in half, collected taxes would decrease as well. Say my property is worth $500k for tax purposes and I have no exemptions. At 3% tax rate the tax collected would be $15k. If the same property is now worth $250k, at 3% tax rate the amount collected would be $7.5k. That's not nothing.
No they wouldn't - because tax rates would rise to compensate. At least within the limits allowed by the law.

School districts are the affected by laws concerning property taxes - since it is all tangled up in school finance.

But appraisals do not per se have anything to do with municipal budgets.

One thing I want the legislature to do is force taxing entities to go to voters anytime property values and forcecasted tax revenues that would result go up more than X%. No city, county, or school district should suddenly have bigger budgets because property became more valuable.

The blogger cited by the OP is full of it. Count me as one of the people who say "Stuff changes all the time. some of it is good, some of it isn't. Deal with it." I suppose the blogger is dealing with it by blogging. I call her method whining.
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Old 05-01-2015, 04:16 PM
 
2,602 posts, read 2,188,204 times
Reputation: 992
Quote:
Originally Posted by Ariel_Austin View Post
I noticed you conveniently went right past the quote on budget guidance: ""Earlier this year, City Manager Marc Ott began the budget planning process by directing City staff to develop a budget that focused on affordability and did not increase the property tax rate."
Yes. I ignored the fluff that was PR and had no legal requirement or meaning.


Quote:
Originally Posted by Ariel_Austin View Post
The planning process for the budget starts well before setting any rates.
Which is exactly what I said.

1. Budget first.

2. Then, based on the total appraised value, set the rates.


Quote:
Originally Posted by Ariel_Austin View Post
They make assumptions on what direction appraisals are going and then they work the budget. After appraisals come out they validate those assumptions and if they are wrong they can (1) raise the rates to correspond to a budget they've not yet passed; or (2) they lower the budget to be more in line with appraisals insofar as they inform the budget.
And if you think (2) ever happens, I've got a bridge to sell you.

Whole bunches of the budget are non-discretionary, tied up in union contracts, etc.

In the grand scheme of things (again, collectively) what the appraisals end up being don't matter. The city is going to set the rate to bring in (about) the same amount of money as before. Even if all the appraisals double or half from the year before.

So, again, it's not demand in Austin driving property taxes. It's the spending in the budget.
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Old 05-01-2015, 04:21 PM
 
2,602 posts, read 2,188,204 times
Reputation: 992
Quote:
Originally Posted by hoffdano View Post

One thing I want the legislature to do is force taxing entities to go to voters anytime property values and forcecasted tax revenues that would result go up more than X%. No city, county, or school district should suddenly have bigger budgets because property became more valuable.
They basically already do that, that's the rollback elections.

In the hypothetical situation where all appraisals doubled (and ignoring the complication of homesteads) the taxing entities couldn't actually keep their rates the same, they'd have to lower them.

Truth-in-Taxation: Rollback Tax Rate
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Old 05-01-2015, 04:46 PM
 
Location: Austin, TX
16,722 posts, read 40,846,849 times
Reputation: 9197
That blogger moved her from St. Louis, doesn't that make her part of the problem? Too many people moving here and not enough housing is what is driving gentrification, the demand for more, bigger and better housing.
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Old 05-01-2015, 06:03 PM
 
Location: Central East Austin
614 posts, read 590,995 times
Reputation: 545
Quote:
Originally Posted by CptnRn View Post
That blogger moved her from St. Louis, doesn't that make her part of the problem? Too many people moving here and not enough housing is what is driving gentrification, the demand for more, bigger and better housing.
She's also a white girl living on the east side. Clearly, she doesn't see the irony of her "blog about Austin gentrification."
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Old 05-01-2015, 06:16 PM
 
845 posts, read 1,698,966 times
Reputation: 1070
I'm not a fan of Spike Gillespie. She thinks she's grandfathered into any gentrification discussion because she's a writer.
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Old 05-01-2015, 10:42 PM
 
126 posts, read 115,256 times
Reputation: 74
im not one to normally to **** on stuff outright, but i cant get by the overstretched image on the top of the blog - it hurts my eyes. the overall layout of your blog doesnt meet the design standards of your glasses either. aesthetically, your blog looks more st. louie than austin... oh wait... NVM

housing costs so much you cant afford a .99 cent domain name? is that what you are really saying?

Last edited by bossh0g; 05-01-2015 at 10:50 PM..
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Old 05-01-2015, 10:55 PM
 
126 posts, read 115,256 times
Reputation: 74
Quote:
Originally Posted by petro View Post
She's also a white girl living on the east side. Clearly, she doesn't see the irony of her "blog about Austin gentrification."
i didnt catch shes a white girl living on the east side. i didnt read the blog, i stopped at the stretched image at the top of the blog.

your point is spot on though.
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Old 05-01-2015, 11:25 PM
 
Location: Austin, TX
171 posts, read 156,898 times
Reputation: 95
Quote:
Originally Posted by Novacek View Post
So, again, it's not demand in Austin driving property taxes. It's the spending in the budget.
More people moving here is what drives demand. More people moving here is what fuels the need for an increased budget. Demand is an absolute component to driving up property taxes. One can argue there is not a direct causal relationship but, at a minimum, there is an indirect causal relationship.
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