01/01/2007
Cy-Fair Legislators Outline Issues...
Chamber Eyes Rail Fund
Before he departed for Austin in January, Chamber Governmental Affairs Committee members quizzed state Rep. Gary Elkins, R-Houston, on issues he would face in the 80 th Texas Legislative session.
Elkins is one of eight legislators who represent the Cy-Fair area. He splits the area roughly bordered by Cy-Fair Independent School District ’s boundaries with State Representatives Dwayne Bohac, R-Houston; Bill Callegari, R-Katy; Patricia Harless , R-Houston; Corbin Van Arsdale, R-Houston; and State Senators Kyle Janek, R-Houston, Dan Patrick, R-Houston and John Whitmire, D-Houston.
While several issues were raised, Elkins and legislative committee members kept returning to the subject of two bills passed in a special-called legislative session last year, which reduced local school district property tax rates and expanded the business franchise tax.
Elkins said he had just written a check to pay his local property taxes, and his school tax bill had not decreased even though Cy-Fair ISD’s tax rate had decreased by 15 cents per $100 property valuation. He said “appraisal creep,” or annual increases in appraised property values, mean that property owners may have higher tax bills even if government entities lower their tax rates. He said he would support legislation that calls for a cap on annual appraisals.
Elkins said he opposed legislation that expanded the business franchise tax to include service providers.
“I don’t think anything we did (in the 79 th session) will reduce property taxes,” Elkins said. “And the business tax will hurt businesses, especially small businesses…I am proud I voted against that bill.”
David Anthony , Cy-Fair ISD superintendent, said property owners should see more relief next year when the district’s maintenance and operations tax rate is reduced – per state mandate – to $1.00 per $100 property valuation. School boards could raise that to a maximum of $1.04 per $100 property valuation. Dr. Anthony also reminded the group that another component of school tax – the debt portion for school construction services is in addition to the $1.00 maintenance and operations tax rate. Cy-Fair ISD’s interest and sinking tax rate is $0.30 per $100 property valuation. The Cy-Fair ISD combined tax rate dropped from $1.80 in 2005 to $1.654 in 2006. According to Associate Superintendent George Hobson , the 2007 tax rate will not exceed $1.35 per $100 property valuation.
Anthony said he is not opposed to appraisal caps as long as legislators understand that when local funding decreases, the state is responsible for coming up with the balance of funding needed to fund school district budgets.
“Do you foresee any plan in which there is a shift to the state providing most of the funding (for public education)?” asked Reginald Lillie , Governmental Affairs Chairman.
Elkins said a plan has been proposed, but there is not enough support for it in the House and Senate.
“The state could fund 100 percent of education costs with a state sales tax,” Elkins said. “However, people would have to pay a tax on each dollar they spend. It could wipe out property taxes.”
As lawmakers continue to meet in Austin, Cy-Fair Chamber members are closely watching three issues: the creation of a funding mechanism for the Texas Rail Relocation and Improvement Fund, which was created by House Bill 1546 in 2005 to issue obligations for financing the revamp of certain rail lines for freight or passenger service; additional mandates placed on Texas public school districts; and the franchise business tax revamped in the last legislative session.
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