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RESOLUTION R16-378
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLAINVIEW,
TEXAS, OPPOSING A REVENUE CAP AND LEGISLATIVE
INTERFERENCE WITH LOCAL SERVICES; AUTHORIZING THE MAYOR
TO SIGN THIS RESOLUTION RECOGNIZING THE CITY COUNCIL'S
OPPOSITION; AND DECLARING AN EFFECTIVE DATE.
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 (8%) over the previous year, voters can petition for an election to
rollback the increase; and
WHEREAS, bills have been introduced to replace the aforementioned eight
percent "rollback rate" with a hard cap of four percent , and would require mandatory
elections on an increase over four percent (4%); and
WHEREAS, according to the Texas State Comptroller's latest survey regarding
property tax rates in 964 Texas cities, 57 percent of those cities raised their property taxes
by less than four percent from 2014 to 2015 and 27 percent of those cities actually
reduced their property taxes; and
WHEREAS, that means property owners in at least 546 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
the school districts collect 55 percent of the property taxes paid by Texans which is the
majority of the taxes paid;
WHEREAS, according to the Comptroller's report, the total amount of property
taxes collected by cities rose by 3.61% between 2014 and 2015, while school district tax
collections rose by more than twice that rate or 7.72%; and
WHEREAS, school property taxes have been rising because the legislature
continues to reduce the state's share of funding for schools, which forces the school
districts to receive more revenue from property taxes.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Plainview, Texas, that:
434
The City Council of the City of Plainview, Texas, is opposed to the legislative
imposition of a revenue cap and legislative interference with local services.
The imposition of 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 legislature's failure to address the
problem of school funding.
The Mayor is authorized to send a letter with a copy of this signed Resolution to
each of the City of Plainview's state representatives to inform them of the City Council's
position concerning this potentially harmful legislation.
This Resolution shall take effect immediately from and after its adoption.
PASSED AND APPROVED this 22nd day December, 2016.
ATTEST:
4°1 ';4'
Belinda Hinojosa, City Secrbtary
APPROVED AS TO CONTENT:
Jeffre
ity Manager
APPROVED AS TO FORM:
Les _ Spear Sch id City Attomey
Wendell Dunlap, Mayor