Momentum - Business to Business Online Magazine | Page 18
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Ta xe s Pa st
(Texas) Future
By: Cheryl E. Johnson, PCC
Galveston Co. Tax Assessor Collector
[email protected]
The first tax known was assessed in 3000 BC by Egyptian Pharaohs and collected by scribes. Cooking oil, an item used by all, was taxed
and audits performed to insure no cheating through reuse of a single drop. Fast forward 2,450 years to the Athenians, apparently a
practical lot, who only imposed taxes in times of war and rescinded them when the war ended. (Can you imagine Congress being that
wise?) Their tax was a bit politically incorrect as only foreigners - men and women without both an Athenian mother and father – were
forced to pay a monthly poll tax of one drachma for men and one half a drachma for women.
Since that time, all sorts of things have been taxed and thus tax revolts. The first known revolt occurred in 60 AD and was led by the
Queen of East Anglia, Boadicea, who was opposed to corrupt British tax collectors. Sadly, Nero crushed her army. Next, Lady Godiva,
who agreed to ride naked through the streets of Coventry if her husband would reduce taxes on the citizens. When a man named Tom
gazed upon Godiva’s charms, the term “Peeping Tom” was born. Saxon kings imposed the first property tax on land and property in
476 AD after taking Rome and, sadly, those taxes continue today in one form or another, everywhere in America except Alaska where
only 25 of its 163 cities assess a property tax and there is no state property or income tax (amazing the effect of a rich oil supply).
As you know, the Lt. Governor and my friend Dan Patrick, formed the Senate Select Committee on Property Tax Reform. I was
honored to present invited testimony at its May 10th hearing at the University of Houston (summarized herein). As the ‘fly in the
ointment’ not parroting the Texas Municipal League and Texas Association of Counties mantra, my message was – stop – don’t slow the
bleeding that is the current tax scheme. The current system responds to our efforts to improve our communities because, as values
rise, we are left holding a higher tax bill (demand drives a market based system).
Telling local officials to lower the rate is not going to help the families in the
neighborhoods where values unilaterally increased at incredible rates. Can our
cities and school boards cut the rate to match our individual increases (or even
the 10% taxable limit of the current appraisal cap)? Of course not! The ONLY
way to protect the individual property owner is appraisal caps (limiting the annual
tax increase) or a move to a price paid system whereby the purchaser has full
knowledge at purchase what the tax obligation will be. That is what a progressive
tax is – the ‘taxed’ in control.
I am not certain we will ever move to a sales tax solution to replace property
taxes and I will never support an income tax. (Tax me on my decision on which
property to buy - not on my sweat!) We cannot insure life, liberty and the pursuit
of happiness of Texans if we continue to embrace the regressive system in place
today whereby we are taxed based on the actions of others in our neighborhood
of comparables.
The Texas Homestead Law was adopted to protect the family homestead from
seizure by creditors and favorable tax treatment to the owner. It is time for
legislators to stand behind that and deliver a tax system for Texans that will
give us protection and tax certainty and our local governments a stable revenue
source.
Follow the Committee at www.senate.state.tx.us/75r/senate/commit/c632/c632.htm.
See my suggestions in the nifty little box!
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MOMENTUM / Summer 2016
PROPOSED KEY REFORMS
Property Owner Protection/Assistance
• Reduce homestead appraisal cap to 3% OR reduce to
5% and extend to all real property OR limit increases
to every other year
• Increase margin of error of Property Value Study to
10-20% (removes pressure on values)
• Move to price paid as basis of taxation (eliminating
need for CADs)
• Elect CAD board of directors (county commissioner
precints + county TAC)
• Allow clerical error to refund taxes paid if actual sale
price is less than CAD market value for up to three
years
Government Efficiency
• Five percent (5%) revenue cap for all governments
with automatic rollback provisions
• Cost Effectiveness in tax assessment and collection
for school districts - require centralized collections
unless they can perform function for less; reduce State
funding if refuse
Public Policy Reform
• Allow optional education certification for county tax
assessors and their employees
• Require Comptroller review