HB 1050 - Ad Valorem Tax Reform

[Papa_Tiger]

http://www.legis.state.tx.us/BillLookup ... ill=HB1050

I don't think this has a snowball's chance of passing, but getting rid of property taxes, to be replaced with some other form of taxation has some merit. I hate to see people priced out of their homes because of rising values and many people's largest asset being assigned a value by independent and un-elected and unaccountable board. This form of taxation also leads to lots of games being played by the local tax assessors: raising rates or valuations to offset increases in exemptions passed by the legislature.

I don't know what to replace it with, whether a state income tax or a consumption tax, but this definitely needs reform.

[warnmar10]

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I don't know what to replace it with, whether a state income tax or a consumption tax, but this definitely needs reform.

Consumption tax.

[jason812]

Not to mention the people assessing values will under value their own property to avoid paying higher taxes.

I prefer a consumption tax over income tax. Don't want to pay taxes, don't buy anything. Keep food tax free though. I can't believe there are states that tax a gallon of milk. I would love to get rid of the $300/month payment to the government just for owning a house, even though I will probably end up paying double in an income tax.

[puma guy]

http://www.legis.state.tx.us/BillLookup ... ill=HB1050

I don't think this has a snowball's chance of passing, but getting rid of property taxes, to be replaced with some other form of taxation has some merit. I hate to see people priced out of their homes because of rising values and many people's largest asset being assigned a value by independent and un-elected and unaccountable board. This form of taxation also leads to lots of games being played by the local tax assessors: raising rates or valuations to offset increases in exemptions passed by the legislature.

I don't know what to replace it with, whether a state income tax or a consumption tax, but this definitely needs reform.

Didn't you know that you don't really own your house? You just rent it from the government.

[TexasJohnBoy]

Consumption tax.

I don't have any kids and have no plans to have any, yet I'm strapped with property taxes for the local ISD. Oh and apartment renters don't get hit nearly as hard as owners on property tax.

But, you're right. This won't get any traction, what. So. Ever.

[TVGuy]

The high rate of tax paid to public schools is crazy. I just had a son, but have no intention of sending him to public school where I live. The school district is terrible and would not be of benefit to him at all. How can they justify the massive tax paid to school districts that are so terrible?

[Lynyrd]

The true unfairness in a property tax is that it is an asset tax based on one type of asset only. Where you choose to put your money determines whether or not you pay the tax. Let's say you've got $200,000 put back. Keep it in the bank, no tax except on the interest. Buy stocks or mutual funds, no tax except when you sell them, and then only on the rise in value. Buy property, the full value gets taxed every year and then if you sell it you also get taxed on the rise in value.

Many family farms and ranches have been sold in Texas when the owners passed on because the heirs could not make enough money off the land to keep it up and pay the taxes.

[Middle Age Russ]

Property Taxes are part of the "progressive" taxation scheme. By design, they redistribute wealth from those who own real property to others. Replacing them with any other revenue neutral tax program could only happen over the wailing and gnashing of teeth of those who don't own real property -- and there are more and more of those every day partly due to Property taxes.

[der Teufel]

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I don't know what to replace it with, whether a state income tax or a consumption tax, but this definitely needs reform.

Consumption tax.

Sales tax in Texas is already over 8%. I don't know what it would need to be to replace the revenue from current property taxes, but I probably don't even want to think about it …

[The Wall]

I don't like that a bunch of realtors have so much influence on property values. Maybe a flat rate would be something to consider. Could also continue exemptions and deductions for over 65 and Homestead.

[K.Mooneyham]

I can understand the utility of having an educated citizenry, and that requires funding. However, these days schools are more worried about indoctrinating kids into becoming anti-capitalist social justice warriors than in turning out young folks with useful skills. The idea of basic public education, as it currently stands, has become a waste of taxpayer money in large regard. If they are going to take our money, then we should at least be given value for that money. The property tax isn't going away, but we need some SERIOUS reform in our public school systems.

[The Annoyed Man]

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I don't know what to replace it with, whether a state income tax or a consumption tax, but this definitely needs reform.

Consumption tax.

Sales tax in Texas is already over 8%. I don't know what it would need to be to replace the revenue from current property taxes, but I probably don't even want to think about it …

Yeah, I'm not sure how it would work, although the system certainly needs to be reformed. My combined taxes this year will be $6,352.49........and I'm a retired person....... $4,490.00 to the Grapevine/Colleyville ISD, and $1,862.49 to Tarrant County. The monthly tax amount eats up roughly a third of my social security. Thankfully, I have other funds available to me or I could not retire, but what if I didn't? What if I was retired by necessity by injury or illness? I'd stand a chance of losing my home to gov't's ever-consuming need to spend. It's not right.......not after I made the right kinds of decisions that it took to own my home outright. I'm glad not to be beholden to the banks, but on the other hand, I completely understand why some people give up and just walk away from their homes, leaving it to the banks and gov't to figure out what to do with the now suddenly unoccupied and worthless property.......worthless because it will sit unoccupied for a long time before someone will pony up the cost of being held prisoner to that abomination of a system.

I'd be all for a consumption tax. Yes, the sales tax in my area is 8.25%, but I'd be willing to pay a 10% or 11% sales tax rate if it would get rid of my annual need to drain part of my retirement away to stay in my home.

[parabelum]

Consumption tax, even though I could see it impacting business/economy.

[Papa_Tiger]

Consumption tax, even though I could see it impacting business/economy.

The current ad valorem tax system is going to start impacting the economy (as if it isn't already) as people won't be able to afford houses any more with interest rates starting to climb and property valuations going through the roof. A "starter" home in Central Texas costs > 200K these days. Do that with the median household income of $55k and you are going to be stretched awfully thin between housing, transportation, food and "ACA" costs...

[The Annoyed Man]

Consumption tax, even though I could see it impacting business/economy.

I thought about that, and it is a valid concern. On the other hand, it would have two salutary effects:

1. If I'm not spending $6,352 a year just to stay in a home I already own outright, I have that much to spend on other things.......if I want to spend........thereby contributing to the overall economy. For example, if I had had an additional $6,300 to spend when I bought my car, I might have bought the next model up (4Runer TRD Pro), thereby contributing that much more money to the economy. Right now, my property tax money is just a hole in the ground, and I have zero say over how much tax I have to pay, or how it is spent after I've paid it.
2. The poor and/or the property-less can still avoid paying most taxes by not spending money frivolously on $500 sneakers and 55" TVs unless it is well within their means to do so without becoming a drain on society. As long as (1) food sales are not taxed, and (2) unhealthy consumables like soda pop and potato chips ARE taxed as "not food"; those without property and/or the poor are forced into spending wisely to avoid paying taxes. In the process, they will be forced into improving their own circumstances and health.