Wednesday, April 29, 2015

The same "tax rate" doesn't necessarily mean the same "taxes"

It's been a mainstay of local politicians forever: "I will keep the tax rate flat" we're told. Great; too bad our property valuations went up 7%. So if the tax rate remains "flat", then our taxes go up 7%. That's just what happened this year. So, hey, they cut us a break - a one cent reduction in property tax rate (about 1.7% reduction), so we only had our taxes increase by a little less than 6% this year. Yay. By the way, our taxes went up last year too, nearly 2%. You know, when they told us (wonderfully) that the tax rate would remain the same.

Ok, so when I was on the council, in 2009, we LOWERED taxes by leaving the tax rate the same. Each of the next three years the tax rate was raised, but the same taxes came in. Instead of a one cent tax rate reduction, we should have received a four cent tax rate reduction - Our taxes would have remained the same. Keep in mind, I am talking about existing property. When new property comes on to the tax rolls, the city get's more tax money, but without raising the taxes on existing property owners.

That happened in 2012, when I voted to spend 160,000 on two additional police officers to enhance our public safety. That additional money came from the 32 million dollars in development that happened that year, not from already existing tax payers.

What's going to happen in the future - a strategic plan that has a goal of maintaining a flat tax rate... so as our property increases in value due to strong demand in North Texas, and because people want to live in Corinth, 4%, 5%, 10% increases in value could be the norm. So that "goal" of a flat tax rate guarantees tax increases ad nauseum. My goal is to keep the actual taxes paid by a homeowner flat, or at least below inflation. That means when property values go up tax rates by default should be coming down. And not just by a penny. By the way, inflation is on pace this year to, well, deflate. Last year it was 1.4%; so why a 6% increase in the taxes?

Help me put a stop to this!

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