PRESENTATION: THE FIX WE'RE IN

How do we solve this?
Ensuring our children’s future is paramount – the future of Texas depends on it. Problem is, our current system of school funding is flawed, putting the tax burden squarely on property owners. The Texas Supreme Court has given the Legislature until June 1, 2006 to fix the problem.

Texas REALTORS® believe that any tax changes by the Legislature or courts should encourage Texans to invest in their families and future, not make the barriers to homeownership even higher. Texas already lags woefully behind the rest of the nation in homeownership levels – we currently rank 42nd out of 50 states.

Source: U.S. Census

In 2004, 65.5% of Texas households owned their homes, compared to 69% nationally. The graph above shows how Texas homeownership levels have compared to nationwide percentages over the past 20-plus years.

To promote a fair and stable school-funding system, Texas REALTORS® support the Texas Tax Commission’s legislative recommendations. This plan will:

• Reduce property taxes for both residential and commercial property owners
• Apply a fair, low-rate business tax that does not target any single industry
• Provide new opportunities for thousands of Texas families to buy homes
• Create a better climate for more businesses to invest in Texas

To learn more about the plan’s specifics, we invite you to download the Texas Tax Reform Commission’s report, Tax Fairness: Property Tax Relief for Texans.

Texas REALTORS® also supported two ideas during last year’s 79th session that became reality:

1. Truth in taxation. Gov. Rick Perry mentioned in his February 2005 state-of-the-state address his support for truth in taxation modeled on the Lubbock City Council. Texas REALTORS® believe that if it works in Lubbock, it should work throughout Texas. We support any public policy proposal that promotes disclosure, as well as public awareness, understanding, and involvement in the process of setting tax rates and raising public revenue. That's why we supported a new law that provides for truth in taxation.

2. Increased taxpayer rights of appeal in contesting property tax appraisals. We supported reforms of the appraisal review process in Texas.