Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Well, my house takes me to the poorhouse. At least
it feels that way. Sometimes have property taxes six twenty
four at time, James Quinterol joins as policy director of
the Texas Public Policy Foundation. I get the impression the
governor has an idea of what he wants to do. Evidently,
Lieutenant Governor Dan Patrick has some ideas on what he
wants to do. I'm sure there are members of the
state legislature to have their own ideas. Is there any
(00:22):
way to coalesce these ideas when it comes to property taxes?
Speaker 2 (00:27):
Well, good morning and merry Christmas. Yes, everyone has property
taxes on their mind. And isn't it an interesting thing
that we're already talking about tax relief one month after
we all just approved a constitutional amendment increasing the homestead exemption.
So what this tells me, what today's circumstance tells me,
(00:50):
is that in spite of the tax relief efforts of
twenty twenty three and twenty twenty five, we continue to
have a major problem in this state involving property taxes.
And that is not an indictment on the Texas legislature.
It actually shows you that our local government policymaking environment
(01:11):
is out of control, because what's happening is every time
the legislature cuts taxes, local governments immediately move in to
raise taxes through rate hikes, bond elections, and certificates of obligation.
And so what I find really encouraging about both the
governor and the Lieutenant Governor's proposals is that they include
(01:36):
a call for a local government spending limit, because we
can do all the tax relief things in the world,
but unless you get control of that local spending environment,
nothing will ever work well.
Speaker 1 (01:53):
I think the thing that too is oftentimes frustrate, at
least for myself as a taxpayer, and I think probably
some of our listeners is will well, is that between
local government spending and assessments going up, we never seem
to really get ahead by any significant amount. And it
feels like the only way we're ever going to get
(02:14):
ahead is if we just completely eliminate certain aspects of
the property tax. I know the Governor's talk about eliminating
the school tax. That would be a big chunk for
a lot of people.
Speaker 2 (02:23):
Yeah. Absolutely. You know, with any area and policy, you
always want to have a goal, and so we ought
to ask ourselves with tax policy, what is the goal? Well,
we obviously need to raise enough money to fund core services,
but beyond that, we also ought to give some thought
and consideration to eliminating a burdensome taxes that inhibit people's
(02:46):
ability to use and enjoy their property. And clearly, the
property tax system today presents a real obstacle to not
only acquiring that property. Many many people can't even afford
to get in a home. But once you get in
a home, it's hard to stay there because you have
these incessantly high tax increases that hit you from every
(03:08):
which way. You know, one of the things I find
most fascinating about today's tax environment is we actually have
the second highest number of local governments anywhere in the nation.
And that's back by the Federal Reserve Bank of Saint Louis.
It's got a great database that shows only Illinois has
more local governments than Texas. And so, you know what
(03:29):
we need to do is we need to go back
through all of these various cities, counties, school districts, and
special districts look for opportunities to consolidate and eliminate governments.
In addition to all of the various fiscal rules that
are needed. We need to we need to completely rethink
local government in Texas, and in doing that, we'll get
(03:49):
control of the tax situation. By virtue.
Speaker 1 (03:53):
Florida Governor Rob Desentis is talking about eliminating all property
taxes for homesteads. In other words, if you live in
our state in the case Florida, and you live here
and that's your home that you live in, you don't
have to pay any property taxes. Just the people at
vacation homes and corporations with pay taxes. Should we look
at trying to do something like that here in Texas.
Speaker 2 (04:13):
Absolutely, and in fact, the legislature, to its credit, has
been moving in that direction since twenty nineteen. It's actually
utilized or directed surplus monies to the school to reducing
the school district Maintenance and operations tax rate, and it's
just about had that rate since twenty nineteen. Now, we
(04:34):
still have a lot more work to do. And you know,
one of the things that's unfortunately happened is as the
legislature has compressed the m and O rates, cities and
counties have stepped into that gaped and increased their own
tax rates, figuring well tax payers won't notice because you
know their bills are going down, and so now it's
an opportunistic time to step in and raise their own taxes.
(04:57):
But yeah, absolutely, we can continue to rec surplus monies
at M and O rates and get those school rates
eliminated over a six to eight year period. If we
continue to be serious about compression.
Speaker 1 (05:09):
Right, well let's do it. Then. Thank you, James, appreciate it.
James Quintero, policy director at the Texas Public Policy Foundation
Well, my house takes me to the poorhouse. At least
it feels that way. Sometimes have property taxes six twenty
four at time, James Quinterol joins as policy director of
the Texas Public Policy Foundation. I get the impression the
governor has an idea of what he wants to do. Evidently,
Lieutenant Governor Dan Patrick has some ideas on what he
wants to do. I'm sure there are members of the
state legislature to have their own ideas. Is there any
(00:22):
way to coalesce these ideas when it comes to property taxes?
Speaker 2 (00:27):
Well, good morning and merry Christmas. Yes, everyone has property
taxes on their mind. And isn't it an interesting thing
that we're already talking about tax relief one month after
we all just approved a constitutional amendment increasing the homestead exemption.
So what this tells me, what today's circumstance tells me,
(00:50):
is that in spite of the tax relief efforts of
twenty twenty three and twenty twenty five, we continue to
have a major problem in this state involving property taxes.
And that is not an indictment on the Texas legislature.
It actually shows you that our local government policymaking environment
(01:11):
is out of control, because what's happening is every time
the legislature cuts taxes, local governments immediately move in to
raise taxes through rate hikes, bond elections, and certificates of obligation.
And so what I find really encouraging about both the
governor and the Lieutenant Governor's proposals is that they include
(01:36):
a call for a local government spending limit, because we
can do all the tax relief things in the world,
but unless you get control of that local spending environment,
nothing will ever work well.
Speaker 1 (01:53):
I think the thing that too is oftentimes frustrate, at
least for myself as a taxpayer, and I think probably
some of our listeners is will well, is that between
local government spending and assessments going up, we never seem
to really get ahead by any significant amount. And it
feels like the only way we're ever going to get
(02:14):
ahead is if we just completely eliminate certain aspects of
the property tax. I know the Governor's talk about eliminating
the school tax. That would be a big chunk for
a lot of people.
Speaker 2 (02:23):
Yeah. Absolutely. You know, with any area and policy, you
always want to have a goal, and so we ought
to ask ourselves with tax policy, what is the goal? Well,
we obviously need to raise enough money to fund core services,
but beyond that, we also ought to give some thought
and consideration to eliminating a burdensome taxes that inhibit people's
(02:46):
ability to use and enjoy their property. And clearly, the
property tax system today presents a real obstacle to not
only acquiring that property. Many many people can't even afford
to get in a home. But once you get in
a home, it's hard to stay there because you have
these incessantly high tax increases that hit you from every
(03:08):
which way. You know, one of the things I find
most fascinating about today's tax environment is we actually have
the second highest number of local governments anywhere in the nation.
And that's back by the Federal Reserve Bank of Saint Louis.
It's got a great database that shows only Illinois has
more local governments than Texas. And so, you know what
(03:29):
we need to do is we need to go back
through all of these various cities, counties, school districts, and
special districts look for opportunities to consolidate and eliminate governments.
In addition to all of the various fiscal rules that
are needed. We need to we need to completely rethink
local government in Texas, and in doing that, we'll get
(03:49):
control of the tax situation. By virtue.
Speaker 1 (03:53):
Florida Governor Rob Desentis is talking about eliminating all property
taxes for homesteads. In other words, if you live in
our state in the case Florida, and you live here
and that's your home that you live in, you don't
have to pay any property taxes. Just the people at
vacation homes and corporations with pay taxes. Should we look
at trying to do something like that here in Texas.
Speaker 2 (04:13):
Absolutely, and in fact, the legislature, to its credit, has
been moving in that direction since twenty nineteen. It's actually
utilized or directed surplus monies to the school to reducing
the school district Maintenance and operations tax rate, and it's
just about had that rate since twenty nineteen. Now, we
(04:34):
still have a lot more work to do. And you know,
one of the things that's unfortunately happened is as the
legislature has compressed the m and O rates, cities and
counties have stepped into that gaped and increased their own
tax rates, figuring well tax payers won't notice because you
know their bills are going down, and so now it's
an opportunistic time to step in and raise their own taxes.
(04:57):
But yeah, absolutely, we can continue to rec surplus monies
at M and O rates and get those school rates
eliminated over a six to eight year period. If we
continue to be serious about compression.
Speaker 1 (05:09):
Right, well let's do it. Then. Thank you, James, appreciate it.
James Quintero, policy director at the Texas Public Policy Foundation
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