05-C Tax System Reforms - Laserfiche WebLink

Home Browse Search

Cities Il 1,820.345114, 86.795 1+130.00% 11+37.o1% ~Schools l14,663.8921116,418.7891+252.04% l+109.71% Total 118,968.794 127,319.76711+204.61% 1+81.46% During the 17-yearperiod (1985-2002) municipal property tax levies (adjusted for inflation) grew by 3 7percent. During the same period, population grew by 33 percent. Inflation-adjusted growth in municipal property tax levies was roughly equal to population growth. 3. City services benefit all Texans, city residents and non-residents alike. Municipal public safety personnel are the first and most important line of defense in homeland security. When disasters strike, city fire trucks, police cars, and ambulances don't stop at the city limits. City roads and airports are the foundations of our economy-- without them, state commerce would grind to a halt. The list of invaluable municipal services goes on and on. 4. City services benefit schools. It would be unfortunate to improve the school funding system only to harm the cities in which schools are located. 5. Texas cities receive virtually no funding from the state to assist in providing these essential services. Tax caps or revenue limits of any sort, in the absence of any state funding, are patently unfair and may lead to a disastrous reduction in city services. 6. Current truth-in-taxation laws are designed to prevent sudden property tax increases. Fears about "hiding" tax increases within appraisal increases are unfounded. When valuations rise, the effective tax rates of cities drop in exact proportion. This lowered effective rate is the baseline from which cities must operate, triggering tax hearing requirements and the potential of a rollback election. In other words, the effective rate, which is well-publicized by cities, is designed to shed light on the relationship between appraisal valuations and tax rates. Cities that must raise property taxes do so now in the full light of day, thanks to the effective rate calculations. 7. Proposed tax or revenue caps ignore budget realities. (Please see article below.) Prior to meeting with members of the legislature, it may be helpful to download these two pamphlets prepared by TML staff.' "Where Do Cities Get Their Money?" and ~School Finm~ce and Texas Cities." City officials should feel free to share these materials during their meetings with their legislators. TML member cities may use the material herein for any purpose. No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the Texas Municipal League.