Friday, May 23, 1997
Increased homestead exemption one possible
compromise
BY RICHARD HORN / Abilene Reporter-News
With time ticking away and tempers reportedly flaring, observers
of the property tax wars say stories from the front lines are
changing hourly.
"This place is rife with rumors," said Dick Lavine,
head of the Center for Public Policy Priorities.
Lawmakers on the House-Senate conference committee have been
so stymied, he said, because the two chambers take such drastically
different approaches toward reining in booming school property
taxes.
And although panel members reportedly had one compromise proposal
in sight late Thursday night, it's impossible to predict what
the full Legislature - and ultimately the voters - would accept.
One possible solution - simply increasing the current homestead
exemption - would be the easiest and would most help those who
can least afford to pay high taxes, said Lavine, who's followed
the issue from the beginning andrated the various proposals in
a series of fax reports.
"It would give a much greater tax break to a family at
the bottom of the income scale than to a wealthier family,"
he said. "It would be a very progressive change in the Texas
tax system."
Businesses would remain taxed at essentially the same level,
he said.
Currently, school districts provide at least a $5,000 exemption
for homeowners, meaning taxes are not levied on the first $5,000
of property value.
Lavine said lawmakers could, with little pain, boost that exemption
by $11,000 to $16,000 and use their $1 billion state surplus to
reimburse school districts for the lost revenue.
Thus someone with a $20,000 home would only pay taxes on $4,000
of the value.
Richard Petree, chief appraiser of the Taylor County Central
Appraisal District, said he, too, has heard rumors that the increased
homestead exemption may be what ultimately emerges from the last-minute
legislative struggles.
"I think that's the simplest way to be able to give a
break to typical homeowners, and particularly voters, which is
who they're really trying to get to anyway," he said.
The drawback? It doesn't make structural changes in the tax
system, which is what's really needed, Petree said, meaning taxpayers
would soon find themselves back where they started.
"It's a scab on a festering wound," he said, "but
it would probably be the best way for them to get out of the session
with something."
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Copyright ©1997,
Abilene Reporter-News / Texnews / E.W. Scripps Publications
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