Houston Mayor seeks property tax hike for Harvey recovery (sales, city hall)

[Spartacus713]

Never let a crisis go to waste....

The City of Houston's property tax rates have been limited in recent years by a state law capping them - except in case of an emergency. Now Mayor Sylvester Turner want to increase them, to the levels they would be at now without the caps.

Mayor seeks temporary property tax hike for Harvey recovery

Mayor Sylvester Turner will ask City Council to approve an 8.9 percent hike in the city's property tax rate this fall to help Houston recover from Hurricane Harvey. Turner's proposal, which will begin with a series a public hearings later this month and reach a formal vote in mid-October, would increase the property tax rate from 58.64 cents per $100 of appraised value to 63.87 cents.

That is what the city's tax rate was four years ago, before a 13-year-old voter-imposed limit on Houston's property tax collections began forcing City Council to cut the rate each year to avoid bringing in more revenue than allowed. Turner is able to propose an increase beyond the strictures of the so-called revenue cap by declaring an emergency, allowing the city to collect a projected $113 million for one year.

{More at the link}

Lots of home and business owners have been devastated by these floods and are not going to be very excited about the prospect of a property tax increase.

In any case, the debate is on and Democrat Mayor Sylvester Turner is proposing a tax hike.

What say you, especially those of you hailing from Houston?

[Ghost Town]

Wow, I never heard about any tax freeze in Houston area. In fact home appraisals increase every year. It's not enough for them? Tax rates already are super high

[Spartacus713]

So the tab is estimated in the article in the OP at $20 million (10% of $200 million) extra for debris removal plus whatever it costs to replace ruined city vehicles (however many of those there are - I bet not very many) and the costs related to "the municipal courts building, City Hall and its adjacent annex, and two sewage treatment plants knocked offline by flooding," much of which will be covered by insurance. Let's just say another $20 million, just to be generous.

So that is an estimated $40 million in costs to the "City of Houston".

The estimated increase in taxes proposed by Democrat Mayor Sylvester Turner - $113 million for one year, or about 300% of the estimated costs.

This smacks of political expediency by people who are notorious for loving to raise taxes.

[vwgto]

Bold move. Will there also be a property tax rate increase for the inevitable market value declines, where values were already falling before the storm?

[96tahoe]

Dumb move.

[Texyn]

In other-words, it's quite fruitless to always neglect an idea for the city just because "it's too much strain on the taxpayers." At the end of the day, the money has to come somewhere in order to allow a sufficiently livable city.

[Jack Lance]

Maybe we should start a GoFundMe page for storm debris pickup and city infrastructure repair? Also lets see if we can tap that state "rainy day fund" remember that. I mean has the Mayor tried "alternative " sources ? It doesn't seem that he has given it much time to finds other means...


P.S. Maybe Les Alexander could knock off a hundred million of the sales price of the Rockets and he a Fertita could donate a 100 million or so to cover this cost...

[mike650i]

Not to mention the pension plan is bankrupt. Somehow doubt itll just be a one year increase.

[chris_ut]

Originally Posted by vwgto

Bold move. Will there also be a property tax rate increase for the inevitable market value declines, where values were already falling before the storm?

FEMA actually has a program where they cover the gap from this.

[LizzySWW]

Originally Posted by Jack Lance

has the Mayor tried "alternative " sources ? It doesn't seem that he has given it much time to finds other means.

Agree with finding alternative sources Jack. Edited to Add: "Genius Jack" If tax hiking is the only option, a sales tax increase seems more fair than raising property taxes. And don't get me started on the Rainy Day money, such a waste!