Let’s Talk Property Tax ….. by Mo Saidi


Property Taxes

I have been following and studying the proposed 2020 city and county budget reviews. I have made presentations supporting the argument that the proposed tax rates need to be reduced both at city and county to offset the ever-increasing property appraisal valuation.  Here is why?

The proposed city and county effective tax rates (the tax rate that would produce the same revenue as the preceding year) have been declining in the past five years.  The lower effective tax rate is reflective of continued increases in property appraisals along with additional new developments (residential and commercial), plus the increasing sales tax revenue.  However, the city and county proposed tax rates continue to trend upward above the effective tax rates drawing even more revenues.  For 2020 budgets, the proposed city tax rate is 1.83 cents and county tax rate is 3.75 cents above effective tax rates respectively.  The city budget leaves $3.49m cash over the required 90-day expenditure reserve by the end of September 2020.  Similarly, the county budget leaves $9.6m cash reserve, while proposing the max tax rate close to the rollback rate (the threshold rate that require voter's approval if higher).

The data indicates the proposed adopted tax rates (city and particularly county) should follow the downward trend close to effective tax rates. The fact that this year is the last opportunity to raise the property tax rate up to 8% without voter’s approval (Next year the cap is lowered to 3.5%) should not be an excuse to burden taxpayers any further. The notion that our tax rates are lower than other communities is disingenuous, since any reduction gained from lower tax rates are wiped out by higher property valuations to the point that taxpayers end up paying more in tax dollars. The citizens do deserve lower tax rates.

Mo Saiidi            September 9, 2019

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3 comments on “Let’s Talk Property Tax ….. by Mo Saidi

Tom Holubik

It strikes me as odd that the city/county officials aren’t proudly clamoring to lower our tax rates! The community is growing, property values are up, total tax revenues are up… lowering the rate should be any public official’s (re)election campaign slogan. But they seem to be silent on it.
What gives?

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les mizell

Lot of Californians moving here and want to make Texas a sucky state like they just moved from. It’s not just Californians, but other socialist who think the government can handle money better than individuals. I fear that this attitude will take away all freedom from our children and will lead to a revolt that America will not survive.

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DENNIS RIDNER

Mo, help me get this straight. The city and county are steadily get new tax input to budget from new housing, sales of a retail nature , and from the almost illegal property valuations, of existing properties? But yet they want to increase their budget, for what reasons? There seems to be a gouging fixing to happen when they already are going to get more revenue from new developments, new home buyers, new car registries, and more sales taxes on a number of different items that the tourist industry here provides. Has there been any indication , from the tax offices to how and what they are using to justify these new increases, and what ammo can we use at the meeting to shoot them down?

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