Texas Property Taxes (Allen, Post, Plains: real estate, mortgage, homes)

[hoffdano]

Many of the links related to Texas school finance are old and do not reflect the 2005 and 2006 changes.

The 2005 ruling was driven by the fact that 300+ school districts were at the $1.50 M&O tax limit. I think the court concluded that being at the maximum tax rates now had become a "state property tax" which is unconstitutional. School districts no longer had any ability to adjust tax rates - they were at $1.50 because they had no choice.

So the 2006 legislature relieved school districts of some local funding and replaced it with state funding. Recapture obviously still occurs and the legislature did nothing to change that. Recapture is not unconstitutional (at least that is what I read into it). The real problem now is that the 2006 changes set the state funding at the 2006 levels for each school district. That amount was different for each district - and some like Spring ISD - did a very poor job setting their spending levels correctly.

School districts can set their tax rates with voter approval. Voters are not in the mood to pay more taxes, and the state is under overall budget pressure. So money is tight. But it is bad all over the US now, and much worse in most places.

I searched for "texas school finance 2006" and similar.

[Cathy4017]

Recapture should be abolished. It puts too much pressure on the 130-something districts that are considered "wealthy."

There are ways to mitigate the recapture back to the state that involve improvements to existing facilities, but I don't know the ins and outs of that.

And yes, it is bad all over. My sister taught at Dripping Springs for several years, and they are considered a "wealthy" district...well, they were not all that wealthy after the state took so-called "excess funds" back.

The same thing happened in my home West Texas county. Any of those counties that have oil and gas money coming in are picked like chickens.

[hoffdano]

Only tax revenue for M&O (maintenance and operations) is subject to recapture. Your school property taxes have two components - M&O and I&S (interest and sinking - which means debt repayment). The I&S portion, limited to $.50 per hundred, is not subject to recapture. The I&S portion is used to repay the bonds issued and sold by the school district.

Bonds are used primarily for construction - new facilities, maintenance to existing facilities, and other long lasting items such as school buses. The funds raised by selling bonds cannot by law be used for M&O type expenses - the biggest portion is salaries.

If you pay $1.25 for school taxes now - probably about $1.00 is for M&O and $.25 is I&S. Every ISD has a different mix of course depending on how much debt (bonds) they have issued. Typically fast growing school districts like Leander are always building schools and issue bonds often.

I don't like recapture (my ISD has been subject to it a long time) - but I support some equalization at the state level. I just don't like the idea of property-poor areas not having enough funding to adequately fund their schools.

[circledmetalart]

Thank you for your replies. CaptnRN I am going to check out that link, thanks. High_Plains_Retired, thank you for your info also. We currently have a home in NM valued far above 175000, but our annual property tax is under $1000. Why Texas? Because I like Texas and Texans, most of them.

[cobolt]

I get tired of people complaining about the *high* Texas property taxes. I live in TX but I am currently in Chicago, visiting family. My cousin has a house comparable to mine in size w/ much less property (land). He pays about 8K a year in taxes! My other cousin has a condo. She pays 4K! On a Condo! Plus 3% state income tax and 10% sales tax (11% in city proper)

Get a grip. It can always be worse.

[Austin97]

Originally Posted by Cathy4017

Are you sure that the current system is STILL not unconstitutional? Most of the items I dug up online mention several efforts over that time period, but I didn't find anything that completely resolved the issue of unconstitutionality. If you have a link, please provide it. I would like to read it.

Recapture (Robin Hood) still occurs.

Yes, I know.....my home county has to send millions of dollars to the state every year so Texas can dole it out to other districts.

Another district in which my sister taught for several years has come up short in funding many times because of having to send so much in, rather than being able to keep it for their own use.

It causes NO end of resentment that poorer districts can pay lower property taxes and be able to use other districts' money. It just really, really sucks that some property-poor poverty-stricken area school can take advantage of this. Many people move to certain areas BECAUSE of the school districts....and find out this ugly truth.

You know what really sucks is that I have no kids and still have to pay property taxes to pay for YOUR kids to go to school... The amount that gets shipped off is miniscule compared to the amount that is collected from people without children.

There is no such thing as a fair tax system. There is only what the people we have voted for (and by proxy they represent our will) have created.

If you really cant get over it, try to think of the money that is going to help the impoverished school districts as coming from those without children. Your money is 100% going to your district.

[hoffdano]

Perhaps the most accurate statement about taxes is that there is no tax system that is fair for everyone.

What might be fair for me could be decidedly unfair for others. Arguing about fair is almost a dead end.

[Cathy4017]

You know what really sucks is that I have no kids and still have to pay property taxes to pay for YOUR kids to go to school... The amount that gets shipped off is miniscule compared to the amount that is collected from people without children.

I don't have any kids, either. That's just an ASSumption that YOU made. YOU also have to remember that other people without kids paid for YOU to go to school, just as they did me.

It doesn't matter whether I like it or not. It's the way it is. But each district should be able to keep its own money to support its own schools, period. But they can't, because the state insists on robbing Peter to pay Paul, and all that crap.

Your money is 100% going to your district.

That is an assinine statement--the district that I grew up in has had to send over $10 million in "excess" funds back to the state. Recapture makes sure of that. I don't even know what the amount is at the present time. I don't think I want to know.

And....

Arguing about fair is almost a dead end

True.

[chrystal055]

Property Tax would be much Lower,if Schools would Consolidate the Administrations !!!They have too many Secret Meetings,to Raise Taxes,and Bonuses!!!!Computers do much of the Work,yet they Expand the Administration!!!Too Much Waste,and getting WORST!!!!

[chrystal055]

Does it make any Sense,that Schools only Notify Parents with Kids,that they want to Raise the Tax Base?This is what I was told,by the Superintendent of CICD,FORT WORTH,TX!This is a Good way to Screw People!!!