HomeMy WebLinkAboutRes 2017-03-298 Opposition to a Revenue Cap by State y/
CITY OF ANNA, TEXAS
RESOLUTION NO. 2017-t�- $
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE ANNA, TEXAS, IN
OPPOSITION TO A REVENUE CAP AND LEGISLATIVE INTERFERENCE WITH LOCAL
SERVICES.
WHEREAS, bills have been introduced to cap the amount of property tax revenue cities can
collect each year in a misguided effort to reduce the property tax burden on homeowners and
businesses; and
WHEREAS, currently, if a Texas city increases property tax collections by more than eight
percent over the previous year, voters can petition for an election to rollback the increase; and
WHEREAS, bills have been introduced to replace that eight percent "rollback rate" with a hard
cap of four percent and require mandatory elections on an increase over four percent—all with
the false claim that this would provide property tax relief; and
WHEREAS, according to the state comptroller's latest survey of property tax rates in 963 cities
in Texas, 56 percent of cities raised their property taxes by less than four percent from 2014 to
2015 and 27 percent of cities actually reduced their property taxes; and
WHEREAS, that means property owners in at least 547 Texas cities would have seen no
reduction in their city property taxes if the four percent cap had been in effect; and
WHEREAS, while the savings to individual taxpayers are very small or even non-existent, a
four percent cap could represent a loss in vital city services; and
WHEREAS, cities collect just 16 percent of the property taxes levied in Texas, and most of the
property taxes paid by Texans (55 percent) go to school districts; and
WHEREAS, according to the comptroller's report, the total amount of property taxes collected
by cities rose by 3.61 percent between 2014 and 2015, while school district tax collections rose
by more than twice that rate or 7.72 percent; and
WHEREAS, school property taxes have been rising because the legislature continues to
reduce the state's share of funding for schools, which forces districts to get more revenue from
property taxes.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA,
TEXAS, THAT:
Section 1. The recitals above are incorporated herein as if set forth in full for all purposes.
Section 2. That the City Council of the City of Anna, Texas, is OPPOSED to the legislative
imposition of a revenue cap and legislative interference with local services; and
Res. 2017-03 9
OPPOSITION TO A REVENUE CAP 1
Section 3. That imposing a revenue cap on cities: (a) does not provide meaningful tax
relief; (b) robs cities of the ability to meet local needs; and (c) diverts attention from the real
cause of higher property taxes, which is the failure to address the problem of school funding.
PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this 28th day
of March, 2017.
ATTEST: APP ED:
City Secretary Carrie L. Smith � ""'® ""�J�,, Mayor Mike Crist
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Res. 2017-iO3.L
OPPOSITION TO A REVENUE CAP 2