Monday, October 22, 2018

Many Texas Cities Budgets Increase Due to Rising Property Taxes

Georgetown is not the only municipality that is benefiting from increasing property values.Dallas News
Here is a chart that plots property tax revenues and population for Georgetown over the last 5 years.




Property tax increases like this threaten people's ability to own homes and businesses.

The age old question has to be asked again! Why are Georgetown property tax receipts growing at a much higher rate than the population?

The answer of course is that your City Council will not reduce the tax rate to compensate for the increased property values!!

Council members and staff continue to tell the tax payers that they are doing a fantastic job as stewards of your money because they have not raised the tax rate! This is very disingenuous and makes taxpayers very cynical about their government.

"The state requires cities to post an "effective tax rate" as a tool for comparison. That's the rate taxing entities would set if they were to take in the same amount as the current year.

Only when a city's maintenance and operations taxes increase more than 8 percent in a single year can property owners petition for a rollback election.

When leaders in Austin talk about providing property tax relief, their goal is to draw down that 8 percent, which is also known as the rollback rate. In 2017, the Texas House proposed legislation to reduce the threshold to 6 percent. Senate Bill 2 proposed a 4 percent limit. After neither plan passed, even in his special session, Gov. Greg Abbott has been calling for a 2.5 percent ceiling in 2019."
But cities are arguing for their own perverse definition of local control. Even a 6 percent cap, they argue, could restrict their ability to meet public safety needs.

Expect to hear arguments from the City that a 2.5 percent cap would require more frequent bond elections because new debt does not trigger a rollback election under the current law or the state reform proposals.


Notice in the City's lobbying plan they expect to pay lobbyists in Austin to fight any legislation that would lower the rollback rate. This clearly is not in the best interest of the property owners in Georgetown.

If you want to keep more of your hard earned money, let your Council people and your legislators know you demand property tax reform that will reduce your tax burden.

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