Chasing the Wind

I love what those guys at C.L.O.U.T. are doing and trying to keep our property taxes low. They’re easy to listen to on the radio, but man, they need somebody to help them with their emails to make them easier to read. Ouch.

Short recommendation: Vote Yes on Proposition 2. The other Proposition 1 is an attempt by the City of Houston to derail the voter-initiated Proposition 2.

Background and long post below for those interested in the numbers and the complicated C.L.O.U.T. email:

The problem with property taxes is that they’re going up much, much faster than income or inflation; they’re tied to the value of your property. On a fixed income, you’re hosed; I’m not on a fixed income, either, but raises in engineering are few and far between these days. Here’s some raw numbers for my school and property taxes since I moved here 5 years ago:

2005: 5603 (estimated)
2004: $5067
2003: $4582
2002: $4141
2001: $3742

As you can see, my taxes have gone up 50% in 5 years. Did you get a 50% pay raise over the last 5 years? Neither did I; and neither should the City of Houston.

Here’s the semi-intelligible C.L.O.U.T. email that will give more details:

Title: CLOUT Supports Prop 2
Author: Paul Bettencourt
Date: 09/24/2004

Dear C.L.O.U.T. Members:

CLOUT urges you to vote for The City of Houston Proposition 2 Revenue Cap signed by 29,000 citizens that has our support as it will reduce the cost of Houston City Government each year by holding all City revenue increases to the inflation rate and population growth. If the City exceeds this limit, these monies must be refunded to the taxpayers or a public vote will be scheduled to allow the tax money to stay in the cities’ hands. This covers all city property tax, sales tax, water and sewer fees, etc… collected in a fiscal year, and it is the same concept proven to be successfully in Colorado called the “Taxpayer Bill of Rights” which has returned 3.2 Billion dollars to state taxpayers since 1993. The Mayor has responded to the citizens petition with a charter amendment called Proposition One, which applies the same ‘yardstick’ of CPI and population increases only to property tax revenues.

The problem is that Prop. One will not save taxpayers a dime for the next few years as yearly City of Houston property tax revenues are no longer growing that fast. It has a 4.5% cap that has a public vote if exceeded, which is also applied to just the water and sewer rates not the fund’s total revenues. Note: Prop. One also has language that adds one more year to an existing over 65 (senior) property tax exemption increase that is already on the books through 2007 at the City of Houston and the Harris County Tax Office!!! This saving of $40 or so won’t occur until the October 2008 tax bill which is four years away, so it’s not timely relief for Seniors. They should know an regular Houston City Council Ordinace passed at any time can help them just like the one passed in the Lee Brown administration and not required for a charter amendment like Prop. One.

By the way, clearly the C.L.O.U.T sponsored appraisal cap reduction legislation from 10% to 5% or less will help homestead property taxpayers as an average Houston home will go up 9% on their tax bill this year alone. That’s a 106% increase over seven years, but with the fact that many business or industrial properties are down in value the City will see a only a 2% property tax revenue increase in 2005 which is not enough to trigger Prop. One in any case. It would of helped Houston Taxpayers five years ago, but it’s not a real solution in today’s conditions. Only Prop. 2 will actually slow the growth of city government, help cut waste, and keep taxpayers’ dollars away from the tax-spenders as it has in Colorado! Vote for Prop. 2 and encourage your friends, family, and your co-workers to do so as well. More detailed C.L.O.U.T analysis on these propositions will be available shortly as it’s important long-term public policy to discuss.

Dan,Edd, & Paul