Posted on 06/07/2006 9:52:39 AM PDT by anymouse
Homeowners expecting to save $2,000 on their school property taxes should brace for a bit of sticker shock.
According to figures from the county’s tax assessor, the best the average homeowner in the county can expect in savings thanks to the recently passed school tax relief laws is $544 during the next three years.
“I think it is a bit disingenuous to tell people they will be saving $2,000,” said Cheryl Johnson, the Galveston County Tax Assessor-Collector.
“We will definitely pay less because of the new law, but I don’t want people to be deceived about saving $2,000.”
The $2,000 figure comes from a series of campaign advertisements for Gov. Rick Perry. In each of those television commercials, Perry brags about a pay hike for Texas teachers and that “the average homeowner will receive a $2,000 tax cut” during a three-year period.
Johnson, a Republican like Perry, was cautious about calling the governor out.
But she said her research found the only way the “average” homeowner in Galveston County would see such a tax cut would be if Joe Average owns a $500,000 home.
The highest average homestead value in the county for 2006 is $216,656 in the Friendswood school district, according to Johnson’s figures.
“The closest I could come to $2,000 was if home values did not increase and if the (tax) rate did not increase, and that’s only if compared to what was paid in 2005” Johnson said. Even then the savings were only about $860, she said.
And most taxpayers would likely base any tax savings on comparing tax bills year by year, she said.
“It’s not real savings to me if how much I pay in 2008 is higher than what I pay in 2007,” she said.
Johnson said she believed her report was generous in that she based the homestead values for 2007 and 2008 on the same rate value increases from 2005 to 2006. She said also that she based her estimates on no tax rate increases by local school districts.
The new laws allow school districts to assess a one-time 4 percent rate hike with all future increases to first receive voter approval.
Johnson’s research also estimated a 2007 statewide rate reduction, which is a rate to be determined by the commissioner of education. Johnson’s report estimated that to be 33 cents.
That figure, said Johnson, is likely higher than what the actual reduction rate will be.
Johnson also used typical homestead exemptions in her report.
Based on Johnson’s estimates, residents in Friendswood school district would see the biggest tax “savings.” By comparison Galveston school district residents would save on average $91.
Homeowners in Hitchcock school district will receive the lowest tax bill savings — $4.87.
+++
Estimates of tax savings on average homesteads in Galveston County ISDs
2005 2006 2007* 2008*
Clear Creek ISD
Average HS value $163,229 $171,148 $179,452 $188,158
Average M & O HS tax bill** $2,112.27 $1,972.94 $1,562.29 $1,645.00
Savings based on 2005 M&O taxes -$139.33 -$410.64 $82.71
Cumulative three-year saving $467.26
Dickinson ISD
Average HS value $97,656 $103,194 $109,047 $115,232
Average M & O HS tax bill** $1,239.84 $1,172.98 $940.47 $1,002.32
Savings based on 2005 M&O taxes -$66.85 -$232.51 $61.85
Cumulative three-year saving -$237.52
Friendswood ISD
Average HS value $204,086 $216,656 $230,000 $244,165
Average M & O HS tax bill** $2,836.29 $2,682.02 $2,150.00 $2,291.65
Savings based on 2005 M&O taxes -$154.27 -$532.03 $141.66
Cumulative three-year saving -$544.64
Galveston ISD
Average HS value $106,609 $117,023 $128,455 $141,004
Average M & O HS tax bill** $1,099.30 $1,085.53 $907.64 $1,008.03
Savings based on 2005 M&O taxes -$13.78 -$177.89 $100.39
Cumulative three-year saving -$91.27
High Island ISD
Average HS value $55,253 $58,873 $62,730 $66,840
Average M & O HS tax bill** $483.04 $466.81 $381.84 $414.72
Savings based on 2005 M&O taxes -$16.23 -$84.97 $32.88
Cumulative three-year saving -$68.31
Hitchcock ISD
Average HS value $80,957 $90,595 $101,380 $113,449
Average M & O HS tax bill** $989.36 $1,005.41 $863.80 $984.49
Savings based on 2005 M&O taxes $16.05 -$141.61 $120.69
Cumulative three-year saving -$4.87
La Marque ISD
Average HS value $85,229 $92,573 $100,549 $109,212
Average M & O HS tax bill** $1,053.44 $1,031.72 $855.49 $942.12
Savings based on 2005 M&O taxes -$21.72 -$176.23 $86.64
Cumulative three-year saving -$111.31
Santa Fe ISD
Average HS value $99,634 $103,449 $107,410 $111,522
Average M & O HS tax bill** $1,227.19 $1,132.14 $877.89 $916.96
Savings based on 2005 M&O taxes -$95.04 -$254.25 $39.07
Cumulative three-year saving -$310.22
Texas City ISD
Average HS value $79,137 $84,828 $90,928 $97,466
Average M & O HS tax bill** $769.65 $742.97 $607.42 $659.73
Savings based on 2005 M&O taxes -$26.68 -$135.55 $52.31
Cumulative three-year saving -$109.92
* — Based on market value increase proposed for period 2005 and 2006
** — After typical HS exemptions
Cheryl Johnson is a the Democrats worst nightmare - a smart, charismatic Republican woman official that isn't afraid to tell it like it is and back it up with facts.
Cheryl Johnson tax ping.
To be fair, Perry did not say that the $2,000 was in US dollars. He could have been talking pesos.
they wish it was in euros
no property appraisal caps = no tax relief what so ever...
it's all smoke an mirrors...
He must have ment cents not dollars considering the following ISD -
Hitchcock ISD
Cumulative three-year saving -$4.87
This is just one smart and Cute little Galveston County Elected Republican Chick, Cheryl Johnson's take on this.
We all worked hard to get her elected. And we are pretty proud of her. What say all of you? I'm still reading.
I'm a little slow.
OK, so whay wouldn't this be (2,836.29 x 3)-(2,682.02 + 2,150.00 + 2,291.65) = $1385.20? Why are they only caclulating the savings delta from the previous year instead of from this year's tax?
And most taxpayers would likely base any tax savings on comparing tax bills year by year, she said.
“It’s not real savings to me if how much I pay in 2008 is higher than what I pay in 2007,” she said.
These numbers are bogus. She should calculate the totals with her 6.15% increases(which gives aproximately 1.065 increase in the tax rate) without any reductions and them subtract the toals with the reduction.
If you do this, then it will be (2,836.29 x (1.065+1.065^2+1.065^3)-(2,682.02 + 2,150.00 + 2,291.65) = $2,540.07
I think Perry means "average" in HIS neighborhood.
Good on Johnson for pointing this up.
Sorry BellStar, I don't agree with her numbers. This looks like democrat math.
She is no Democrat but her math was odd to me too!
But than I'm no Math Major either.
Hopefully with a retraction, CKMRS, Kinky, and Bell will feel a little guilty before spreading this all over.
I can't believe out of all the millions of people in Texas we can't find someone better than the empty suit that resides in the Governor's Mansion.
http://www.bizjournals.com/houston/stories/2006/05/29/daily31.html
Perry was wrong in basing his numbers off the average sales price, but we don't need to make it any worse than it really is. It should be the difference between having the property tax cut and not for 3 years. Don't throw in this year to year delta or add an increase to one figure and not the other.
These assessors have an agenda, it would appear.
Then DON'T compare it to the $2,000 figure!
If there was no plan passed, the Friendswood example would result in a $1134.52 tax increase, the way you are calculating it.
If your taxes were lowered from $2,000 per year to $1,000 per year, what would your "Cumulative three-year savings" be?
Democrat Math Answer: $1,000
$2,000, $2,000, $2,000
-$1,000, $0, $0
Savings = $1,000
Actual Math Answer: $3,000
(2,000+2,000+2,000)-(1,000+1,000+1,000)
Actual 3 year savings = $3,000
Now, tell me which one do you agree with?
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