|
ARMSPAC Announces Solution to Texas Property Tax Problems Our property tax system is hopelessly complicated. The system cannot be modified or improved. Why? Because our property taxes are tied to the market value of real estate. ARMSPAC wants to see a COST system installed to replace the present appraisal based, market driven property tax system. Several things will happen, all of benefit to you, the property tax payer. - The annual appraisal notices will be eliminated.
- The annual outrageous property tax increases will be a thing of the past.
- Your mortgage payment will no longer be in danger of being exceeded by your property taxes.
- The cities, schools, colleges, counties, etc., since they will no longer receive annual automatic increases in revenue, will have to tighten their belts. This is the biggest benefit of replacing the present system with the COST system. If they need more property tax revenue, they will have to raise the tax rate, in front of the people, something they don’t have to do now.
- The cities, schools, colleges, counties, etc. have no requirement under the present property tax system to be accountable for the money they receive. There is no incentive to find ways to cut costs. The revenue they receive is spent, and when you complain to a councilperson or board member you are told, “We didn’t raise your taxes”.
- The mind-boggling complexity of the present property tax system will be eliminated. The argument about “caps” and “no caps” will cease. There will be no need for appraisals, since COST would rule. COST is relatively easy to determine.
- Since your taxes will not be raised by higher appraisals, there will be no need to spend the time and money to protest the increase.
- Do you realize that you are being taxed because your neighbors are selling their home and making a profit?! Since your taxes will not be raised by higher appraisals when the market values go up, your property taxes will no longer be raised because of someone else’s good fortune. The market values will still go up, but under the COST system, they will not affect your home’s taxable value!
At a recent lunch with a state representative, he said the biggest problem is that there is no accountability on the part of those receiving the annual increase in property taxes. ARMSPAC agrees that is a serious problem, but it will continue to be a problem as long as the taxable value of your property is tied to the market values from rising real estate prices. The market value has to be divorced from the property tax system, and replaced with the COST system. Lack of accountability will no longer be the problem it is today, because, other than increases for the rate of inflation, the cities, schools, colleges, counties, etc will have to increase their tax rate to raise revenue. The people will accept the rate increase or object, but no longer will the cities, schools, colleges, counties, etc., be able to say “We didn’t raise your taxes”.
What about the transition, from a system based on market valued to a system based on COST? Simple. The present property values would be frozen. The COST system will start out with the same tax base as exists now. There will be no less taxes collected under the COST system than there is presently.
About three years ago, Dan Patrick (recently elected as a state senator) went to Austin with members of C.L.O.U.T. to request lowering the “cap” on home appraisals from 10 percent to 5 percent. The house approved it, but the senate didn’t vote on it. Why? Well, lobbyists complained “They are trying to cut our tax revenue”. Ladies and gentlemen, that is as close to a lie as you can get. Lowering the “cap” wouldn’t cut a DIME of taxes! The lower “cap” would simply lower the outrageous annual increases.
But lower caps aren’t the answer. A 5 percent cap still is four times the rate of inflation! Why should our taxes go up more than the rate of inflation? They shouldn’t! Lawsuits are being planned. Whether it’s lawsuits or “caps”, the market value would still be the catalyst raising our property taxes. Lawsuits and “caps” are simply band-aids on a dying patient. The market value driven property tax system has to be scrapped! Help ARMSPAC to have the COST system installed.
Appraisal Removal Makes Sense Political Action Committee
P.O. Box 2729, Alvin, TX 77512. Web: www.armspac.com Phone: 888-331-0327 It’s better to light one candle than to curse the darkness. You can reach Mr. Murphy at
This email address is being protected from spam bots, you need Javascript enabled to view it
Or at his website: www.murphy-properties.com ### |
