I am asked frequently what issues will come to the forefront in the next regular legislative session. At this point, I can confidently predict two items that will see legislative action in the 80th Regular Session, which convenes next January. First, there will be legislation to ensure that the elderly and disabled see proportionate property tax relief under their homestead exemptions. Next, there will be a great deal of discussion and likely action on reforms to the property tax appraisal system and tax rollback procedures.


Addressing the homestead exemption for the elderly and disabled is a piece of unfinished business from the school finance special session. We need to ensure that those claiming the exemption and property tax freeze offered to the elderly and disabled see the same reduction in school district property taxes enjoyed by others. This requires amending the Texas Constitution and legislation to do this passed the Texas House of Representatives unanimously. However, the proposed constitutional amendment didn't see action in the Texas Senate before the special session ended.


This legislation will be brought back in 2007 and the goal will be to have the constitutional amendment on the ballot next May. This will enable the amendment to pass in time for local school districts to factor it into their budget planning.


Approval of this constitutional amendment will ensure that the elderly and disabled will see their school property taxes reduced by the same percentage as other property owners.


The entire property tax appraisal system and tax rollback election structure is also up for an in-depth review. All three of our state's top elected officials have declare this to be a priority for the next legislative session.


Gov. Rick Perry has created a 15 member Texas Task Force on Appraisal Reform and charged them with providing legislative recommendation on how to improve on the current appraisal process. Gov. Perry pointed out in his announcement of the commission's creation that the total amount of property taxes paid by Texans has increased by almost 300 percent in less than 20 years (1985 through 2004). A lot of this increase has been driven by rapidly rising taxable values. For example, the taxable value of property in Houston increased 40 percent in five years (1998 to 2003).


Lt. Gov. David Dewhurst directed the Senate Finance Committee to perform the following work: Study and make recommendations relating to the feasibility and options for capping property appraisal taxes at the state or local level. Review current appraisal practices focusing on standardizing procedures for appraising property located in more than one jurisdiction.


In my chamber, House Speaker Tom Craddick has also made it clear that appraisal reform will be on the agenda in the next session. "Appraisal caps, to me, is a real important factor," Speaker Craddick has stated. "If we're going to get these property taxes to stay down and keep them [the property tax cuts] intact, I think we're going to have to look at our appraisal process."


Speaker Craddick has assigned two interim charges to the House Committee on Local Government Ways and Means relating to appraisal districts and another interim charge regarding property tax rollback elections.


The Texas Legislature already took action to mitigate rising property taxes during the school finance special session by reducing by one-third the amount of effective tax rate increase it takes to trigger an automatic tax rollback election for a school district.


I believe that next in the next regular session Texans will see the most thorough review of our property valuation system and rollback election requirements in modern history. The goal should be to craft an appraisal system that is both rational and fair to property taxpayers. It should be coupled with a new rollback election process that offers a brake for taxpayers to apply when the cost of government has exceeded a reasonable limit.

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