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Texas, like many other states, is wrestling with taxation
issues. Property taxes continue
to be a topic of concern even though the overall state and local
tax burden in Texas is
among the lowest in the nation, ranking 43rd according to the
U.S. Department of Commerce.
Preparing for the Next Legislative Session
The Texas House of
Representatives and the Senate appointed committees to gather
testimony and make recommendations on property tax reform to the
81st Legislature in 2009.
The House Interim
Select Committee on Property Tax Relief and Appraisal Reform and
the Senate Finance Committee’s Sub-Committee on Property
Appraisal and Revenue Caps are conducting independent hearings
around the state this summer.
The committees are
charged with proposing changes in the current tax code that will
result in a fairer method of:
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Property
appraisal
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Equalization of
appraisals through the appeals process, and
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Overall
management of the appraisal districts.
Committee members
are also studying ways to revamp current truth-in-taxation
procedures for a more open, honest and timely notification to
property owners when their taxes increase.
Testimony Centers on the Good, the Bad and the Ugly
Both committees
heard testimony from many public finance experts and members of
professional organizations who represent a wide range of
taxpayer groups.
Some of these
experts testified that overall, Texas’ property tax system is
one of the fairest, if not the fairest, in the nation. They
emphasized the fact that only seven states have higher property
tax levels than Texas.
Other taxpayers
shared stories about dramatic changes in property values
resulting in large tax increases and spiraling tax levels that
many claim they can not afford. Additionally, experiences were
presented of property owners facing appraisal review boards and
chief appraisers who are allegedly not responsive to taxpayer
issues.
Finally, a
significant number of experts and concerned citizens testified
that appraisal increases are the result of state-mandated
reappraisal practices. They said the state’s reliance on an
annual Property Value Study conducted by the comptroller’s
office contributes to increased school taxes in some cases.
The Texas property
tax issue is further complicated by the realization that
property taxes contribute over $30 billion to the cost of public
education in Texas; a number so huge that the only viable
alternative may be a state income tax.
Regardless, the
legislature is committed to addressing these issues in 2009 and
information gathered from these statewide hearings will aid in
the process.
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