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HomeMy WebLinkAbout2019-05-28 Euless Articles Texas lawmakers pass property tax reform bill BY ANNA M. TINSLEY AND TESSA WEINBERG MAY 25, 2019 09:54 PM, UPDATED MAY 25, 2019 10:00 PM AUSTIN Gov. Greg Abbott has said for months that he wanted lawmakers to find a way to give Texas property owners — particularly those being taxed out of their homes — some relief. Late Saturday, state lawmakers signed off on a property tax reform plan they believe will do just that. “It has been over 40 years since we’ve had significant property tax reform,” said state Rep. Dustin Burrows, R-Lubbock, who carried the bill in the House. The measure is known as Senate Bill 2, or the Texas Property Tax Reform and Transparency Act of 2019. And it’s geared, state officials say, to slow the growth of already skyrocketing property taxes and make the entire process of how they are calculated more transparent. “For far too long, Texans have seen their property taxes skyrocket as they are reduced to tenants of their own land,” Abbott said in a statement. “Tonight, the Texas Legislature took a meaningful step in reinforcing private property rights by reining in the power of local taxing entities, providing more transparency to the property tax process, and enacting long awaited appraisal reforms.” The House approved the measure on an 88-50 vote, with Tarrant County Democratic state Reps. Nicole Collier, of Fort Worth, and Chris Turner, of Grand Prairie, voting against it. The Senate approved the measure on a 21-9 vote with state Sen. Beverly Powell, D-Fort Worth, voting against it. “The deal that’s been negotiated is one that’s for the record books,” state Sen. Paul Bettencourt, R-Houston, author of the Senate’s version of the bill. And Tarrant County residents played a key role in the legislation by making their voices heard, officials said. “Those Texas citizens’ testimonies, I can recall,” said state Sen. Kelly Hancock, R-North Richland Hills, who chaired the conference committee that negotiated the bill’s changes. “We had a huge turnout in Tarrant County. The voices of the taxpayers that we heard,... they were recalled time and time again.” Abbott, Lt. Gov. Dan Patrick and House Speaker Dennis Bonnen recently touted a legislative agreement on this and two other key bills — House Bill 3, the school finance bill, and House Bill 1, the state’s budget. The only bill lawmakers must pass each session is a balanced budget. Lawmakers are expected to sign off on the budget Sunday, the day before the session ends Monday. KEY PROVISIONS “Texas taxpayers are frustrated by rising property taxes,” Burrows said. “They are often confused about the process, and many are scared of losing their homes. Senate Bill 2 sheds light on who is raising their taxes and by how much, it encourages Texas voters to get involved and engaged, and it gives our taxpayers more control over the process.” Among the measures in the lengthy bill: • Capping property tax revenue at 3.5 percent for cities and counties. A separate bill includes a 2.5 percent for schools. The goal, they say, is to slow the future growth of property tax bills. Cities, counties and schools could always raise more revenue from property taxes with voter approval. For years, taxing entities could raise 8 percent more in property tax revenue before voters could call for an election to roll that rate back. • Letting chief appraisers keep a list of people who will provide free assistance in property tax value appeals to give to those appealing their values. • Stipulating that a person can’t be an employee of a taxing entity and also on the Appraisal Board, in an effort to eliminate conflicts of interest. • Creating a better notification process about exemptions. “I think this is transformative,” said state Rep. Matt Krause, R-Fort Worth. “I think we’ll look back at this and see it as the spark that began to lower property taxes in Texas.” Krause this year filed House Bill 1333, the Appraisal District Reform Act, which was folded into this overall property tax reform bill. TARRANT CONCERNS Turner said he voted against the bill because he believes it’s “a bad idea.” “I believe cities and counties should have the flexibility to govern and write their budgets the way they see fit,” he said. And if voters don’t like it, they can always choose to vote those officials out of office. “I don’t think the Legislature should micromanage county and city decisions, and that’s what SB 2 does,” Turner said. “And I fear that, because of SB 2, we will see significant cutbacks in essential public services, such as public safety.” Local officials have long been concerned about the impact of this bill. “My objection all along has been that it’s interfering with local control,” Tarrant County Judge Glen Whitley said. But he believes Tarrant County won’t be impacted by the property revenue caps as much as smaller counties because the community continues to grow and generate more revenue. “We will be limited,” Whitley said Saturday evening. “But I think we will be OK.” He did say there’s much in the final version of the massive bill made public this weekend that he hasn’t had a chance to review. “The devil is in the details,” Whitley said. Fort Worth Mayor Betsy Price said the city also is reviewing the legislation. “That being said, Fort Worth has always operated under budget constraints, and we will continue to do so,” Price said in a statement. “Fort Worth will continue to operate in a fiscally conservative manner without jeopardizing services our citizens depend on most.” Here’s why Texas homeowners shouldn’t expect property tax cuts from school funding deal BY THE STAR-TELEGRAM EDITORIAL BOARD MAY 23, 2019 03:24 PM, UPDATED MAY 23, 2019 03:24 PM Gov. Greg Abbott, from left, Lt. Gov. Dan Patrick and House Speaker Dennis Bonnen arrive for a news conference at the Governor’s Mansion in Austin, Texas, on Wednesday January 9, 2019. (Jay Janner/Austin American-Statesman via AP) JAY JANNER AP State leaders patted each other on the back Thursday afternoon and declared historic progress in the never-ending war on Texas property taxes. But don’t strain your eyes looking for a tax cut on your next bill from the county. The steps announced by Republicans Gov. Greg Abbott, Lt. Gov. Dan Patrick and House Speaker Dennis Bonnen — billions more in state funding for schools so local taxes can be reduced, rules to make it harder for local governments to increase revenue and big changes to how the state allocates money to school districts — should slow the skyrocketing levies that homeowners are seeing. But the reality is this: In a fast-growing state, with property values soaring and an aversion to certain types of taxes, real cuts are close to impossible. Texas governments are funded primarily by property and sales taxes. A potential third major source of revenue, state or local income tax, is off the table. Texans have made it clear they don’t want one, and we have no quarrel with that. The lack of an income tax is a competitive advantage for the state and a natural limit on government. Lawmakers also have been reluctant to tax businesses more. All that adds up to a heavy reliance on property taxes. Growth drives up property values, and Texas’ decades-long boom shows no signs of slowing. We just learned that Fort Worth has again moved up the list of largest U.S. cities, now ranking 13th. Tarrant County’s chief property appraiser has estimated that overall property values will rise as much as 10% once appeals are settled soon. This has made life a little easier for local governments for years. They’ve been able to spend more and reduce tax rates. Even with crafty appeals of their property appraisals, homeowners and businesses still pay more to their cities, counties, hospital districts and — especially — school districts. City and county leaders rightly fear the impact of tighter caps on their ability to raise revenue. Fort Worth Mayor Betsy Price warns that caps could mean budget cuts of several million dollars and a reduction in all city services beyond public safety. With growth comes needs, particularly in education. We encourage school districts to look for savings, particularly in administrative costs. But more kids means more spending. Plus, Texas schools serve plenty of low-income families, and the state’s future depends on helping them become part of a competitive future workforce.. Property taxes just aren’t well-suited to fund extended, massive growth. After all, we’ve heard leaders claim victory before. In 2006, the Legislature slashed school tax rates by a third, replacing the revenue with increased sales and business taxes. Even now, rates are much lower than they were before the 2006 deal. But try telling that to homeowners. Few options for a long-term fix exist. State leaders pledged that more state money would continue to flow so local taxes can be cut. That should help, but a general recession or a downturn in the oil and gas industries, another major source of state revenue, could make it difficult. Appraisal reform could be another useful tool, but it’s a complicated issue that demands deliberate consideration. It was telling that Patrick, a longtime warrior on the tax issue, framed the matter as a “dramatic cut in future tax increases.” So, sure, give lawmakers credit for a step forward. Just wait to see if lasting relief materializes.