Slowing Austin's property tax madness

[hoffdano]

Originally Posted by pmiranda

1. I kinda doubt most old folks are voting for bond packages. Every person I know over 50 has a "F the government" attitude. Maybe I just know alot of grumpy old people :-)
2. I'm not sure that rent has a direct relationship to property tax. I think rent is set by the market, which has more to do with supply and demand than a small percentage of the cost of property. I am not a landlord, and I'm sure if I were I'd want to be able to raise rent when the taxes increase, but I don't know that it's the biggest driving factor.

(oops - I just noticed I replied to two year old post)

You need a wider circle of friends. I am 50+ and most people I know (who are similar age) evaluate each and every tax issue on its own merits. Some are good, some are not.

I have been part of several citizens committees involved in school bonds for LTISD, which includes Lakeway. Lakeway is much younger today than it was, but there are many older folks still in the area. And they do not simply vote No to all school bonds. It is up the school district to make their case for the money.

I don't live in the city - but I would absolutely have voted against the last rail proposal. It was bad bad bad. But I would support many things that Austin needs more money for - such as roads.

For the OP - the over 65 exemption probably has a small overall effect on property tax revenue. It only affects school taxes, and it doesn't save an over 65 any money at all when they purchase property.

I think the #1 thing that needs to change is to pass a law that prevents taxing entities from automatically increasing their budgets because of rising property values. Austin, Travis County, etc. should not simply have extra money to spend because property values rose 11% last year. Above a threshold set by law, they should have to go to voters for any additional revenue or tax rates have to reset automatically.

[Novacek]

Originally Posted by hoffdano

I think the #1 thing that needs to change is to pass a law that prevents taxing entities from automatically increasing their budgets because of rising property values. Austin, Travis County, etc. should not simply have extra money to spend because property values rose 11% last year. Above a threshold set by law, they should have to go to voters for any additional revenue or tax rates have to reset automatically.

That's already the case. Austin can't just increase the budget 11%, if they do that, there will be a rollback election.

Now, the trigger isn't a totally flat budget of course, that doesn't make sense.

[scm53]

Originally Posted by hoffdano

I think the #1 thing that needs to change is to pass a law that prevents taxing entities from automatically increasing their budgets because of rising property values. Austin, Travis County, etc. should not simply have extra money to spend because property values rose 11% last year. Above a threshold set by law, they should have to go to voters for any additional revenue or tax rates have to reset automatically.

Former Harris County Tax Assessor-Collector (and now State Senator) Paul Bettancourt has introduced a bill -- SB 182 -- that would dramatically change how rollback elections are conducted. First change is that when the new rate exceeds the rollback rate, the election would be automatic. Today, they require petitions, then the taxing body can call an election. Second change would be that the rate would be 6%, vice the 8% today (with some exceptions in calculating that rate). Needless to say, the taxing bodies are howling. They like the automatic increase in spendable revenues.

But I doubt it is going anywhere. Hearing last month, nothing since. Probably dead for this session.

[Trainwreck20]

But I doubt it is going anywhere. Hearing last month, nothing since. Probably dead for this session.

For or against, it makes sense to discuss - hence our legislators are instead dealing other 'major' issues, like same-sex couples and whatnot :/.

[Novacek]

Originally Posted by scm53

First change is that when the new rate exceeds the rollback rate, the election would be automatic. Today, they require petitions, then the taxing body can call an election.

To clarify, petitions are required for some taxing entities, but are automatic for ISDs today.

And the petition is so easy, and the taxing entities so in fear of it, that the taxing entities "never" exceed the rollback rate. Seriously, when was the last time Austin did it?

Truth-in-Taxation: Tax Rate Adoption