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News: CTCAR

Ask State Legislatures to Pass “Property Tax Reform Bill”

Friday, April 19, 2019  

Central Texas Commercial Association of Realtors is a member of the Texas Association of Realtors.  We are sharing this important message below with our members and sponsors.  Your immediate attention is needed. 

You are likely aware that Central Texas tax burden is increasing year over year through Property Taxes.  Private property owners in one of the fastest growing economies face continued pressure in increasing property taxes.

Texans receive their Property Tax statement in April each year and usually see an increase in their annual tax bill.  There are 2 components that make up the amount you owe for property you own - the Appraised Value multiplied by the Tax Rates.  As Appraisal Values on our property increase the Tax Rate should be lowered to match the increase; this Tax Rate is known as the Effective Tax Rate, i.e., the Tax Rate which result in the same total tax bill as the prior year.  Please see this simple video for an explanation:

If the Taxing Entity chooses a rate greater than the Effective Tax Rate, then they are currently limited to an 8% increase over the Effective Tax Rate without incurring the possibility of a Roll Back Election. The current Roll Back Tax Rate was set in 1981. To force a Roll Back Election, voters must, within 90 days of the tax rate adoption, submit a valid petition signed by 7 to 10 percent (depending on the total of the collected taxes, usually 10%) of the registered voters. This process itself represents a high hurdle.  HB 2 & SB2 institute an automatic election if the taxing entity wants to tax at a rate of 2.5% or more than their Effective Tax Rate. They are not “Capped” at 2.5% as many of the opponents of the bill decry.  It simply means - the Taxed Body gets a vote.  The Taxing Authority will have to increase their transparency to convince the voters the Effective Tax Rate increase above 2.5% is required.

In Austin alone, all metrics indicate that the City of Austin and Travis County are spending and taxing at rates that greatly exceed population growth. The five-year forecast presented in the 2018 City of Austin Adopted Budget projects the City going to the Rollback Tax Rate - 8% above the Effective Tax Rate each year for the next 5 years. With an 8% increase annually over the next 9 years your property tax bill will double.  This bill would slow that rate of growth so you won’t see your property tax bill double but every 29 years.

TAKE ACTION

As Business Community Members and Real Estate Owners in Texas we want our voice heard in Support of Roll Back Tax Reform. 

     Please click this link and enter your home address.  This will populate a list of who your House and Senate Representative is.  

      Copy and paste the content of this Resolution into the body of the email (usually sending through their system)

      Hit Send

See what some CTCAR Members are saying in support of Property Tax Reform

Thank You from CTCAR Government Affairs!


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