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 Propositions Index |
Previous Proposition
Proposition 5The ballot will read: The constitutional amendment authorizing the legislature to permit the voters of a municipality having a population of less than 10,000 to authorize the governing body of the municipality to enter into an agreement with an owner of real property in or adjacent to an area in the municipality that has been approved for funding under certain programs administered by the Texas Department of Agriculture under which the parties agree that all ad valorem taxes imposed on the owner's property may not be increased for the first five tax years after the tax year in which the agreement is entered into.Background: The state runs several programs that provide federal funds to small cities to improve roads, sidewalks and drainage systems in their downtown areas. Proposition 5 would let small cities (under 10,000 population) that receive funding from these programs freeze property taxes temporarily in and around the improvements, if local voters approve. For: Proposition 5 would provide small cities a way to create incentives for property owners to improve downtown buildings in line with revitalization efforts. Despite improvements to infrastructure, some private property owners have not renovated their property. Smaller cities cannot use the tools provided to larger cities, such as tax increment financing or tax abatements. This amendment gives small cities a tool that allows them to achieve similar results. Against: This amendment is unfair to taxpayers. Since tax dollars are being spent to help improve the value of private property, the owners should be required to pay the taxes on the resulting increases in value. Some property owners may have been planning to improve their property even without the tax freeze. Reducing the tax burden for these individuals will shift that burden to other taxpayers. that would occur if this proposition passes, CLICK HERE. Words to be added to the Constitution will be underlined. Words to be removed, if any, will be [ For a more detailed analysis of this proposition For the full 43-page House Research Organization report |