Wednesday, August 20, 2008

Is Hell Freezing Over?

Growing Texas Town Decreases the Property Tax Rate, But What Will Happen to Appraisals?

This week's Hill Country News featured an encouraging story on the City of Leander actually reducing it's property tax rate while increasing services.

"The budget could be increased by $1.36 million to nearly $17 million and more firefighters and police officers would be added, all while lowering the property tax rate to $0.602590 per $100 of property valuation, which is a half-cent decrease from the current amount of $0.607591."
Leander, a growing suburb north of Austin, has wisely chosen to use the growth strategy to raise revenue, instead of the wealth confiscation strategy.

"[City Finance Director Sharon] Johnson said increased fuel costs have been fixed into the budget as well as the projected incomes from Lowe's and Kohl's. "
It seems that having a low cost of living and reasonable tax rates versus the high taxing neighbor to the south, attracts businesses, which, in turn, generate revenue for the city. Of course, we'll have to keep on eye on what happens to property valuations this year, as local pols are notorious for decreasing tax rates and claiming they cut taxes, when they turn around and increase property valuations so that the net effect is a tax increase.

Unfortunately for Leander residents, the city is not the only taxing jurisdiction makin its budget these days.



Freedom's Truth said...

Yeah, the rates are lower, but the appraisals are going sky-high.

I am not fooled. Look at total revenue increases. They get you coming and going.

And the ISD rates are creeping up. AISD is going to 1.08 and will have to ask the voters for the increase. RRISD has over-high debt load and is asking for more in a bond issue.

Randy A. Samuelson said...

Travis, I posted a link to your blog on Michael Sullivan's blog tonight.