Mayor Turner wants to raise your property taxes by 15.3{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} to pay for storm related debris removal. The Federal government has agreed to reimburse the City of Houston for debris removal.
This new Hurricane Harvey tax will be on the value of your home pre-flood. The Mayor is moving to institute the tax before your homes are revalued in January. Do not believe Channel 13 who rarely if ever gets anything right and is stating it is a 9{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} tax increase, pure fiction. The increase is 8.5 cents, which represents an increase of 15.3{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} on your property taxes.
There are three public hearings necessary to enact the tax. Here are the dates and times on the hearings;
September 26th, at 6:00pm October 3rd, at 6:00pm and October 11th at 9:00am.
All will be held at City Hall
I will be writing more on this shortly. Please mark your calendars and if your home flooded please come tell the Mayor and the Council how you feel about money grabs. You may want to ask the Mayor what happened to the 900 million dollars collected for the “Rain Tax”.
This was on my mind.
How did you get to 8.5 cents increase?
Present is about 58 cents and it will go up to 63 cents per $100?
https://houston.novusagenda.com/agendapublic/CoverSheet.aspx?ItemID=11899&MeetingID=253
0.58 x 1.085 = 0.6293
what’s the question again?
update: using the data from your link the increase is closer to 9{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986}. I would imagine where Don gets the higher number is we are supposed to be getting a reduction per the law we voted on called TABOR Prop 1 that Bill White tried several times to gut using deceptive ballot language and court battles.
We took a 2.5{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} reduction from 2016 to 2017 that will not be realized if the increase comes before the 2017 tax bills come out.
Neither, apparently some of the folks here use Bernie math that confuses percentages and cents. A 5 cent increase in Houston’s tax amounts to an 8.5{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} increase.
Most businesses will absorb the increase if they’re smart since it is statutorily a one time event, the costs of moving into unincorporated Harris County will vary depending on the type of business. Those depending on proximity to customers, foot and car traffic, and established relationships will remain. Those that offer unique services not found elsewhere or are willing to absorb what amounts to commuting costs may find moving a better deal, few businesses actually own their land & buildings for it to make a difference. There are lots of vacant strip centers in the county for small businesses to flock towards but many of them are empty because they have flooded in the near past, the belief that moving is always a better idea is typically held by those without a payroll to meet each week or knowledge of existing customers.
“Statutorily a one time event” how does the statute read? You mention “the costs of moving into unincorporated Harris County” how does that apply to us who life in an incorporated area in Harris County that’s not CoH? Speaking of the County I believe that the County Judge has announced his intention to raise funds through bond issuance.
I’m guessing we’re going to get the hard sell on these things because the timing is just right. Quick pass it without diligence because the hour is desperate! Or else!
All things considered, I have a sinking feeling about the matter. I mean that was my feeling as I drank martinis and watched the world drown outside my window. Could the region just slide right into the Gulf of Mexico like poop into a toilet?
Where’s Irwin Allen when you need him?
Willy, if you live in Harris County, you are going to be paying for the bond issue whether you are in one of the cities or not so that is a wash. If you move from a city, be it Bellaire, Houston, or any of the others, you have to compare the costs of services you receive in one of them versus if you move to the unincorporated parts of the county. As a resident, the equation is different since Houston provides garbage service, street lights, police, and water without a MUD district that will tax you separately each year, many subdivisions also run by HOA’s who charge you for the privilege. My MUD tax is $1200, my ISD charges much more than HISD, my garbage service is around $35/month, and so forth, the HOA charging around $800 to provide a deputy 5 days a week part time and a swimming pool. So yes, as a resident of the county, I pay more than I did living in the city limits. My business costs went up as well, particularly the need for additional delivery services and losing customers that did not want to travel to me, even my insurance rates going up because coverage was less complete out here. It would probably be cheaper to move two counties away but my customer base is still primarily in the city and I can’t afford to lose more of them.
Thank you for the reply. I’m not really aware of the details of the various governmental actions that are taking place, yet. I don’t know if I support or oppose those actions because (see above) the details are still unclear.
I have one client, so far, who is being priced out of her current location due to rising assessments. (The assessments were already in place before the storm)
I’m curious as to how this will play out in a macroeconomic sense. Microeconomically I’m wondering how I’ll absorb the hit. I guess we’re going to find out, eh?
The reference was to the wrong assumption that it is an 8.9{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} increase, it is not. Some in the media were quoting 8.5 cents. The effective rate will be 15.3{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} percent when you include the City 6{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} average increase from the HCAD evaluations. Some folks will pay higher than 15.3{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986}, others lower. Turner is seeking to capture pre-flood evaluations to maximize the take.
Based on the channel 2 poll in which 89{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} of the folks expressed a very negative opinion of the idea Sly will be moon walking this back, some or all. The real question is why did 9 council members think this was a good idea?
The speculation is that the underwriters for 1.49 billion in bonds looked at what was about to happen to the tax based and wanted the increase. Either way, the City’s living on the edge method of accounting is about to catch up with them in a big way.
Forgive me for being a little slow, so let me see if I understand what you stated.
1) The last paragraph seems to suggest that the tax increase is to cover the tax loss for the lower values of properties, is that correct? If yes, isn’t it true that this year evaluations are set already unless one protests? Are you stating that there will be a $100 million loss in tax base in Harris County? More so if the $100 million is only for the City.
2) Is the following what you are referring to, If a home has a present value of $188,679 a six percent increase would result in a new value of $200,000 (rounded). A 58cent rate of the $188,679 home would result in a tax of $1,094. A 63 cent tax on a $200,00 home would result in a tax of $1,260. $1,094 is 87{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} of $ 1,260, thereby resulting in a 13 percent increase in such a property. That would be for one year only based on what I have read.
3) I am not sure if you are including the inflation and population in the percentages that you are using that are allowed by the cap, could you let me know, thanks.
I am referring to the underwriters of the pension bond realizing that the post flood valuations would not support 1.49 billion in debt service. The City is still spending a lot more than they bring in, this will get worse.
The valuations this year increased by 6{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986}. The roll back has not been adjusted. Turner is increasing rate at the same time.
There’s no such thing as a “temporary” tax. Once the government dips into your pocket, they never let go. According to the Chronicle this morning, the rate will increase to 63.87 centers per $100 valuation or an additional $118.00 on a $225,000 home. This will not just affect houses, this also affect apartments, office, retail and industrial properties and I don’t know any of those types of properties that are only valued at $225,000. Landlords won’t absorb the increase, that will be passed on to tenants. On a smaller retail center or industrial property this could increase the operating expenses by an additional $1..86 per square foot a month and the increase on office space would be higher. When the “rain tax” went into effect, one of the properties I represent increased their operating expenses by 6 cents per square foot per month and that tax wasn’t even close to what Turner is proposing. The 8 or 9 liberals on City Council are salivating at the thought of getting their hands on our money. If Turner is looking at driving businesses out of the city, this is a great way to do it.
Quite hilarious that the same Texans who were boldly claiming there wanted to secede now claim that it is the federal governments job to fix our flooding problems
Where do you get that, the only proposal I have heard about to work on flooding is coming from local property taxes and Harris County?
The City of Houston folks stole all the flood money? Pretty sure we can not count on them. They are busy caring for the vulnerables at the GRB.
Quite hilarious that you expect us believe you know who they were and what they are saying now. Where you from cowboy?
I have a hopelessly liberal sister that once made the observation ‘Texans will give you the shirt off their backs unless you demand it. Then they’ll fight to death to keep it.’
She stills believes that is an insult.
I have mixed feelings about Sly’s temporary tax. I wouldn’t have those had the rain tax been used as proposed. And then there is that temporary shit. When it comes to taxes temporary is defined as forever.
Howie, this one is actually temporary, as it has to be rolled back in one year, unless there’s another election to change the City Charter.
The drainage tax was never meant to be just for flood control. It includes streets and other items because that’s where most of the intermediate drainage, ie storm sewers, is located. When Shepherd was redone from Westheimer to Allen Parkway, they installed 7 or 8 foot storm sewers to replace whatever was there before. Even if the road didn’t need replacing, and it did, you can’t redo the drainage without redoing the streets.
Been over three weeks now that the mayor has ignored the trash piling up. I guess he thinks this drive votes for more taxes or something.
He is out of his league. When is it time to recall him?