Posted 11:26 am Monday, August 23, 2010
Pennies Add Up: Property Tax Burden Totals (Download Helpful PDF Worksheet)
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TJC, Smith County, And City Of Tyler Propose Raising Rates
By ADAM RUSSELL
Staff Writer
Sure, the daily special at the cafeteria seems reasonably priced at $8, offering a choice meat, two vegetables and a piece of bread.
Staff Writer
Sure, the daily special at the cafeteria seems reasonably priced at $8, offering a choice meat, two vegetables and a piece of bread.
But that carrot-and-raisin salad looks like a great way to start the meal, and who could pass on the ice-box pie?
As the customer nears the cafeteria line's end, a stuffed jalapeno and drink join everything else on the tray.
In the end, what gets slapped to the cold-sweat side of that tea glass is a ticket that brings the total meal cost to an eye-popping $15.
This is how it all adds up with a Smith County property owners' tax burden - with school, city and county taxes as the entrees and entities such as emergency services districts and junior colleges as the stuffed jalapenos.
The burden is the sum of rates on a property owner's annual tax bill, which arrives in the fall.
Three taxing entities - the city of Tyler, Smith County and Tyler Junior College - have proposed tax hikes this year that would add about a dime to the tax burden, which would rise to $2.1018 per $100 valuation from $2.0059 for a Tyler property owner.
That means the owner of a home appraised at $100,000 would pay $2,101.80 for the next bill, compared with $2,005.90 this year - a $95.90 difference.
Tyler Junior College has proposed the biggest bite to taxpayer pocketbooks, jumping to 18.3 cents from 13.7 cents, about a 4.6-cent difference. The budget-battling Smith County has proposed hiking its rate to 33 cents, a 4.1-cent increase from the current 28.9 cent rate.
TJC and Smith County officials have said they are facing a grim budget year and need the additional revenues.
The city of Tyler has proposed a smaller increase of about a half cent, taking the rate to about 20.9 cents, from 20.4 cents.
Taxable values countywide increased slightly - less than 1 percent - so the tax pinch on property owners who saw their appraised values increase this year would be even greater under the new tax burden that is under discussion.
Nevertheless, the tax burden for a Tyler property owner has changed little in the last decade, with the burden at $1.99 in 2000.
Tyler resident Ernie Clark, 75, understands public officials' positions when considering taxes. He was Tyler city manager from 1991 to 1997.
Because he is older than 65, Clark's taxes are frozen, but the hikes could affect him if businesses he frequents pass on the new tax costs to customers. Clark has spoken out against proposed rate increases at recent public hearings.
"Taxpayers, regardless of their age, will pay more (because of tax rate increases)," he said.
Clark said he understands the taxing entities' vicious economic cycle. Growth means new service demands, and new demands can lead to higher taxes if governments do not plan for tough times.
Jim Blair, Smith Tank and Equipment owner, paid almost $30,000 to the county, TISD, Emergency Services District No.2 and TJC last year. All but TISD are proposing tax increases that would add around $2,000 to his tax bill, he said.
Blair said he must make a profit to stay in business, but tax hikes would affect his bottom line and trickle down to customers. He competes with other manufacturers trying to create the best product for the lowest price, and taxes can compromise his ability to compete.
"It's going to make my prices higher, and whether we are able to offset that increase (against competitors) remains to be seen," he said. "With regulation and taxes, it's hard to make a dollar."
Public officials, in one meeting after another, have detailed reasons for the proposed increases: infrastructure needs, bond payments and operational costs. They noted taxable values have remained relatively static or dropped during the worst economic crisis since the Great Depression.
But Blair said a poor economy is the worst time to put more pressure on the taxpayers. He said his business has been picking up, but market uncertainty, that proposed larger tax burden and possible state and federal increases have caused sleepless nights.
"In my opinion they should try to live within their budgets this tax period, because there's nothing more asinine than raising taxes during a recession," he said. "It just makes it tougher on everybody."
