Texans need to remember that, in general, higher property value appraisals do not raise your property taxes; raising the amount of property taxes you must pay is done solely by elected local government officials. The state does not levy any property taxes.
Each year after new appraised values are set, each local government which levies a property tax must calculate and publish the No New Revenue tax rate. That figure, which reflects appraisal changes, keeps each entity’s tax take equal to the previous year’s take, in aggregate, over its taxing district from existing properties.
New development and significantly improved property falls outside of the No New Revenue tax rate calculation. The No New Revenue tax rate means no new revenue from properties that were taxed in the previous year and that have not seen improvement. New development and improved properties are not part of this calculation which means that the taxing entity can adopt the No New Revenue tax rate and still enjoy much new property tax revenue from new development and improved properties. Last year’s tax rate is completely meaningless in relation to the new rate set each summer or fall by local governments.
Certainly an individual’s appraised value may increase (or decrease) more than the average increase (or decrease) across a taxing district. If an individual’s property value, for taxing purposes, increased more than the average across the taxing district, even adoption of the No New Revenue tax rate may result in higher taxes for that taxpayer but, the taxing entity’s (school district, city, county, hospital or special services district) officials would not have voted to raise taxes. It is in these specific cases that the fight is with the appraisal entity, the other half of the property tax system.
One of the most important things to remember and correct politicians and media representatives about is this: Last year’s tax rate, so often talked about and used in a comparative nature, is completely meaningless in relation to the new rate set each summer or fall by local governments.
For example, if your city’s appraised values increased five percent, the No New Revenue tax rate is lowered to produce the same revenue from those same properties as was taken the year before. The calculations for doing such has nothing to do with what was the previous year’s tax rate or property base value numbers as such will have changed.
Don’t be fooled.
Only a vote to adopt the No New Revenue tax rate is voting for no tax increase.
And, only a rate set below the No New Revenue rate is a tax cut.
Just like cutting property tax in general, all of this accounting leads to the next legislation quagmire that produces no resolution or relief for the Texas taxpayer. The first step in solving the problem is to adopt a 5 year appraisal cycle, not every year. This will limit the over reach by the municipal government establishment. This will force them to live within their budget and expansion for 5 years. Out of fairness to hardworking families outside of the municipality employment sector, it would make the local municipality bureaucracy spend more wisely. Only “needs” will be a met. Public Schools have some real “come down to earth” budgeting and an education on how to do the same with less. Public school “bricks and mortar” spending is a thing of the past. Those who hold on to that concept are in for a rude awakening. If you work for a school district or municipality, you might think about what why you are really there? Is it for the steady paycheck, insurance and retirement? Probably so…., Of course we need municipal services, but not to the point that we build an “iron” curtain of security around public services so that their operation becomes more important than the livelihood of those who make their existence possible. I am appalled at how much state-of-the-art security is being deployed to protect our public institutions? It’s not tenable! Why? Well, it’s because you and I are paying for “crap”! They want us to keep paying into the government abyss. It is a waste of our tax dollars. Now you have municipal socialist party dictating how, when, and where we must serve their interests. I say let capitalism run free!!! Those who produce the best product or solution reap the benefit of there hard work and ingenuity. If you don’t do much of anything other than data entry and stamping paperwork for the state then I would think about a private sector job. Our constitution is there to keep the government bureaucracy under scrutiny at all times. I talking about those who represent us via the electoral college system. ONE DAY, ONE VOTE, NO EXCEPTIONS!
If you can’t establish legal citizenship by valid ID at the poll, then you don’t vote. Our voting system does not support legal challenges for every disenfranchise special interest group. NEED NOT APPLY FOR SPECIAL ACCESS!!!!!!!!