The President has proposed $75 billion to subsidize and renegotiate at-risk mortgages. Yet the total housing package as proposed will require an additional capitalization to Fannie Mae and Freddie Mac of as much as $400 billion.
In stark contrast to the unprecedented level of spending by the federal government I believe a more responsible and direct plan at the state-level is in order to end the mortgage and home ownership crisis - we should significantly reduce and reform the property taxes.
Texas has the highest property tax burden of any state in the nation and Texas ranks a paltry forty-third in the nation in homeownership rates.
These two facts are closely related and should serve as the foundation for action by the 81st Legislature. Property be it a home business farm or ranch is at the root of economic prosperity. Yet even as banks auto manufacturers and other private businesses receive bail-outs exorbitant property taxes continue to deprive families and business owners of their basic property rights and increase the burden of running a business or owning a home.
During the 81st Legislature we must engage in an aggressive effort to cut and reform property taxes. Because the property tax is so inherently flawed there are many opportunities for reform. I along with my colleagues in Texas Conservative Coalition have outlined our priorities as follows:
First we must continue to dedicate excess revenue to property tax relief. To do so we should implement a constitutional amendment to dedicate twenty-five percent of all future budget surpluses to taxpayers in the form of property tax relief. I have recently joint-authored legislation (HJR 38) that would accomplish this.
Returning excess revenue to taxpayers not only benefits Texas citizens but also represents the first steps of moving away from property taxes as a means to finance the daily operations of public schools. The school district maintenance and operations property tax has led to decades of school finance litigation and has borne a complicated system of redistribution known as Robin Hood" to attempt to achieve equity in funding public schools. The Legislature should begin a long-term effort to find a fairer means of living up to the States obligation to fully fund public schools. By moving away from property taxes for school finance we can keep the state out of court and end Robin Hood".
Second appraisal reform is necessary to protect taxpayers against huge increases in property tax bills. I have joint-authored legislation (HB 1575) to reform our current appraisal system and put additional protections in place for the taxpayer.
A home must never be taxed on the basis that it could be a mall or other business which might produce higher tax revenue. Appraisal standards typically include a provision for highest and best use" which is the use of a property that would yield the highest probable property value possible. Under HB 1575 properties will be appraised based on the current designation of use of the property and not the highest and best potential use of the property.
Passing this legislation is integral to restoring property rights which are all too often negated by property taxes. With the infamous Kelo case the U.S. Supreme Court allowed for taxation by eminent domain in which cities could replace a home with a private business in order to increase tax revenue. Taxing a home based on highest and best use" is eminent domain by taxation in which local governments literally tax people out of their homes.
The 81st Texas Legislature has a great opportunity to reduce and reform property taxes to help solve the housing and mortgage crisis which is one of the roots of our current economic problems. Property taxes must be reduced and reformed so that families workers and business owners are free to grow and strengthen the Texas economy.
The President has proposed $75 billion to subsidize and renegotiate at-risk mortgages. Yet the total housing package as proposed will require an additional capitalization to Fannie Mae and Freddie Mac of as much as $400 billion.
In stark contrast to the unprecedented level of spending by the federal government I believe a more responsible and direct plan at the state-level is in order to end the mortgage and home ownership crisis - we should significantly reduce and reform the property taxes.
Texas has the highest property tax burden of any state in the nation and Texas ranks a paltry forty-third in the nation in homeownership rates.
These two facts are closely related and should serve as the foundation for action by the 81st Legislature. Property be it a home business farm or ranch is at the root of economic prosperity. Yet even as banks auto manufacturers and other private businesses receive bail-outs exorbitant property taxes continue to deprive families and business owners of their basic property rights and increase the burden of running a business or owning a home.
During the 81st Legislature we must engage in an aggressive effort to cut and reform property taxes. Because the property tax is so inherently flawed there are many opportunities for reform. I along with my colleagues in Texas Conservative Coalition have outlined our priorities as follows:
First we must continue to dedicate excess revenue to property tax relief. To do so we should implement a constitutional amendment to dedicate twenty-five percent of all future budget surpluses to taxpayers in the form of property tax relief. I have recently joint-authored legislation (HJR 38) that would accomplish this.
Returning excess revenue to taxpayers not only benefits Texas citizens but also represents the first steps of moving away from property taxes as a means to finance the daily operations of public schools. The school district maintenance and operations property tax has led to decades of school finance litigation and has borne a complicated system of redistribution known as Robin Hood" to attempt to achieve equity in funding public schools. The Legislature should begin a long-term effort to find a fairer means of living up to the States obligation to fully fund public schools. By moving away from property taxes for school finance we can keep the state out of court and end Robin Hood".
Second appraisal reform is necessary to protect taxpayers against huge increases in property tax bills. I have joint-authored legislation (HB 1575) to reform our current appraisal system and put additional protections in place for the taxpayer.
A home must never be taxed on the basis that it could be a mall or other business which might produce higher tax revenue. Appraisal standards typically include a provision for highest and best use" which is the use of a property that would yield the highest probable property value possible. Under HB 1575 properties will be appraised based on the current designation of use of the property and not the highest and best potential use of the property.
Passing this legislation is integral to restoring property rights which are all too often negated by property taxes. With the infamous Kelo case the U.S. Supreme Court allowed for taxation by eminent domain in which cities could replace a home with a private business in order to increase tax revenue. Taxing a home based on highest and best use" is eminent domain by taxation in which local governments literally tax people out of their homes.
The 81st Texas Legislature has a great opportunity to reduce and reform property taxes to help solve the housing and mortgage crisis which is one of the roots of our current economic problems. Property taxes must be reduced and reformed so that families workers and business owners are free to grow and strengthen the Texas economy.
