KOLKHORST INTRODUCES TAX BILLS

  

Local State Sen. Lois Kolkhorst has filed a number of bills aimed at limiting aggressive property tax appraisals and increasing funds for local schools.

State Senator Lois W. Kolkhorst

Kolkhorst filed the bills during the current special session.

Senate Bill 118 would lower the maximum increase in the appraised value of a residential homestead from 10 percent to 5 percent, which would prevent the local appraisal district from drastically raising the appraised value of a person’s homestead each year.

Kolkhorst also addressed commercial and industrial property, with Senate Bill 117, which would limit the increase in the appraised value to 20 percent above the appraised value of the property for the preceding tax year, plus the value of improvements to the property, or the market value of the property, whichever is less.

To increase funds for public schools, Kolkhorst filed Senate Bill 116 which dissolves the Texas Economic Development Act, which grants property tax abatements commonly known as “313 Agreements.”  Abatements granted under the program result in approximately $1 billion per year in lost tax revenue to school districts, forcing homeowners and other businesses to pick up the lost revenue.

Kolkhorst says the legislative package, “will broaden the conversation because high property taxes and aggressive appraisals are still huge problems.”

 

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4 Comments

  1. I applaud Senator Kolkhorst for “thinking outside the box” in an effort to provide tax relief for taxpayers, that does not severely hinder the taxing entities from adequate resources to provide basic services.

    SB 118 would help homeowners by restricting increases to 5%. The article does not say if this would be per year or over a period of years, as it is now. The current law limits increases of 10% over several years. That was fine except when the taxes went up the whole 10%. Trying to come up with another 10% in one year was difficult.

    SB 117 would aid businesses by providing limits on tax increases. They need to budget for expenses as well. Large unexpected increases due to surplus inventory on the lot or increased valuation due to plant improvements was a deterrent to modernization and productivity.

    SB 116 eliminates certain tax abatement, allowing businesses to not pay taxes on certain property as an incentive to place an industry or development in a community. This was an unfair advantage to new businesses. Older established businesses that had taken the risk and developed in the community were faced with competition from newer businesses subsidized by the area they had provided jobs, paid taxes and been stewards of the community. In addition, many communities cannot afford to consider abatement because they are already extended trying to maintain their older infrastructure including water, sewage, police and fire protection. To take on a new development and provide them services, without paying the same taxes as others in the community is not feasible. Even though they could use the jobs and resources the new business might bring in over tome. Meanwhile, communities that have multiple tax base industries and are in a growth spurt could have the extra revenue to provide the services without much of a burden and thus continue to prosper.

    I hope your fellow legislators see the value in these proposed bills. I hope you will use your skills to address school finance, Providing adequate funding for the TRS retired teacher health insurance program and discourage using public tax money to support private education. If you would like to discuss these in a public forum, I am sure it would be well attended. If you would prefer a private meeting with some well informed and experienced educators, Tommy Poe, Johnny Zolman and I are retired and can make time to visit as we did when you were our representative.

    God bless.

  2. How about just the state stop dictating property tax value to counties ? Real simple. We do our share, you do yours. Texas business benefits the most from education of its citizens, so they must help to pay for that benefit. Stop interfering in local government. Public education of Texas children should be a 50/50 share of costs per student by state and county, with the state providing benefits for teachers. Yes, it IS that simple. Just do it! Betting this won’t get published.

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