Like most area Katy area homeowners, you probably started receiving your tax statements from area taxing entities. The unfortunate news is that virtually all of the tax relief passed by the Texas Legislature a few years ago is now gone due to higher property values.
Even though the real estate market has slowed in recent months, that didn't stop state appraisal boards from aggressively pushing up property values. The politicians in Austin may have been congratulating themselves for a job well-done, but what they didn't tell you is that you would be back in the same situation just 3 years later. The percentage of school funding provided by the state is back to the same level we had three years ago.
I was speaking with Katy ISD officials just this morning, and the numbers are clear. From the 06/07 budget year to the 08/09 budget year property values in Katy ISD have risen from $14 billion to $18.7 billion. That's a whopping 33% increase in just two years! While Austin has been touting property tax relief, area property values have wiped out the reduction in school tax rates.
Even more frustrating for area school officials is the fact that these rising property values do little to help local school budgets. Maintenance and operations revenues are tied to a per-pupil funding threshold that will likely not change for several more years, or until the legislature decides to revisit the issue. This means that most of the extra money from your rising property taxes goes to Austin, and not to your local schools. This is the reason several area school districts are already holding "rollback" elections which are actually requests to raise the school property tax rates and generate additional funding.
When the legislature advertised property tax relief a few years ago they essentially put a band-aid on a severed limb. Tighter appraisal caps and a real long-term solution to school funding are still desperately needed in Texas. When you get your property tax statements this holiday season don't blame your local school district. Instead, contact the folks in Austin and tell them just how much you appreciate their work.
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