OK, I admit I decided to go to law school to avoid any connection to math. Now, I am confused. Does this tax stuff have any relevance to prosecutors? I await the word of those who were economics majors before law school:

79th LEGISLATURE


Appraisal caps die in House


Vote deals blow to Perry plan
By Stephen Scheibal
AMERICAN-STATESMAN STAFF
Tuesday, April 12, 2005

The House today pre-emptively killed a centerpiece of Gov. Rick Perry's tax reform agenda: a bill that would limit increases on property appraisals � and limit the corresponding tax increases that are pegged to appraisal values.


A push by Republican leaders to resuscitate the bill, by tabling the amendment that would kill it, initially failed on 69-73 vote. After a recount, the spread increased to 66-77.


In the end, the kill shot to the measure � an amendment deleting the clause allowing the bill to become law � passed 81-65.


The vote after about 90 minutes of debate avoided what would have been a longer, more contentious debate that had already split House Republicans on the proposal, House Joint Resolution 35.


Said Rep. Fred Hill, R-Richardson, who had led opposition to appraisal caps, on the House floor: "The time to kill a snake is when you've got the hoe in your hand."


Many local governments also opposed the measure, saying it would limit their ability to raise revenue and pay for services.


The debate now shifts to caps on the amount of money that local governments are allowed to raise.


A revenue caps bill will come up for debate Wednesday. A revenue cap would serve a similar purpose as the appraisal caps measure but would meet its goal by capping the actual amount of money local governments can raise instead of limiting the jump in property values.


Basic math made the appraisal caps proposal something close to a lost cause. Requiring a constitutional amendment, the bill needed a two-third's majority � 100 votes. Tuesday's truncated debate indicated appraisal caps lacked even a basic majority of support.


Rep. Dwayne Bohac, R-Houston, sponsored the bill and has spent weeks trying to win support for appraisals. Tuesday's session moved him from defending the bill to simply trying to preserve a debate that was going against him.


"I think it's a sad day for taxpayers all across the state of Texas," Bohac said. "That unpaid citizens' lobby deserves to have this bill debated on the House floor."

John: To prosecutors, probably not. To county attorneys and criminal district attorneys, yes it has relevance because its extremely important (and bad) to our Commissioners Court. You must provide all this mandated services but you can't raise taxes to do it.

John,
I have mixed emotions about the appraisal cap issue. On the one hand I'm a property owner and wish there was some more equitable way of funding county, city, and school district government. On the other hand, as long as we're stuck with the property tax scheme the notion of "capping" increases in property valuations seems a little shortsighted and contrary to the notion of a free market economy. Property values rise and fall in direct proportion to the law of supply and demand. In counties where you have a growing demand for homes, real property, etc., you will also likely have a corresponding demand for governmental services, i.e., greater need for new schools, more and better law enforcement, and so on. Your county is probably one of the best examples in the state that I can think of. Williamson County has been growing for years, property values have gone up, and I bet the need for county services has gone up too. In the criminal justice system especially, the county has to keep up with the growth in its population. Eventually, as the population increases a county will need more jail space, more police or deputies, more prosecutors, more courts, more probation officers, etc. If the county (or city) cannot increase its revenue in manner that is directly proportionate to its population growth, then the county's ability to provide essential services will suffer. Imposing artificial caps on increases in property valuation ties the county government's hands at a time when it needs to grow to keep up with the demands of the public. And one thing I'm reasonbly certain of is that the public will always demand certain essential services from its government such as roads, infrastructure and, a service near and dear to my heart--PUBLIC SAFETY. I'm sure there have been abuses in some jurisdictions which are driving this kind of legislation. Personally, I'd love to see the whole concept of taxing property owners to fund government scrapped in favor of some type of tax scheme that reaches all segments of society, rich and poor, land owners and non-land owners alike. Whoever can come up with that plan, however, should get a Nobel Prize of some sort.

For all the reasons Lee set out, placing unrealistic and arbitrary limits to appraisal increases has the potential to cripple county and municipal government. Revenues get limited but demands for services never seem to. And, unless you can fund your office through forfeiture or other non-tax revenues, it has an impact on you too. Here in the coastal bend we are already having to scramble to cover lost revenue because of tax receipt deferral based on over-65 and disabled landowners (the taxes continue to accrue but no recovery action is available while they still hold the homestead). Now, we have elders getting appraised values frozen for the life of their homestead ownership. This puts a greater tax burden on fewer taxpayers since the appraisal freeze isn't lifted until the property is subsequently transferred. Through all of this I have yet to have anybody show that their appraised value is more than the real fair-market value of their property.

Your posting makes a lot of sense to me. More people = greater demand for public services. I agree with everything you say -- up until the end. As a property owner, you are concerned with your rising tax bill. As a renter, I am also concerned. My landlord (who gets the tax bill in his hand) will pass on the tax burden to me. I don't get a tax bill in my hand, but my rent goes up every time taxes go up. So, Lee, I and every other person who lives in a community, feels your pain and shares the burden, even if we don't directly receive a property tax bill.