Texas Proposition 5 (2007)
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Proposition 5 grants municipalities with a population under 10,000 the power to grant tax freezes for up to 5 years to property owners.
Proposition 5 appeared on the statewide November 2007 ballot in Texas along with fifteen other statewide propositions; all of them passed. All sixteen ballot measures were legislative referrals voted onto the ballot by the Texas State Legislature.
Overview
This amendment would apply only to municipalities receiving funding through the Downtown Revitalization Program or Main Street Improvement Program. If the measure is approved in the municipality then it would freeze taxes for 5 years and be subject to the following terms and conditions:
- Have to be reached before December 31st of the tax year in which the election was held
- Freeze all increases in ad valorem taxes for 5 years
- Apply to all ad valorem taxes imposed by any political body
- Expire on January 1st of the 6th year
Many of these areas that are being targeted by revitalization companies are hoping to erase "blight" from small communities and might possibly employ eminent domain.
Organizations or Entities that support Proposition 5:
- Department of Agriculture
- Office of Rural and Community Affairs (OCPA)
- Downtown Revitalization Program
- Main Street Improvements
- Texas Capital Fund
- Housing and Urban Development (HUD)
- Community Development Block Grant (CDBG)
Statement of Support
Supporters of this amendments hope that these programs will make participating cities more attractive destinations for tourists. They believe that currently many privately owned residences do not renovate their property due to worries about tax increases. Implementing this tax freeze would lift this fear and allow for community improvement and a greater source of revenue in 5 years.
Most of the time a TIF would be employed , but this program would be more tailored to rural areas.
Statement of Opposition
Would shift tax burdens to a very small portion of the community. Also other tax entities located in the community would have no way to protest the tax freeze since they cannot vote on it.
Others that oppose Prop. 5
- Lonestar Times had come out against it[1]
- Liberty Yes, Anarchy No blog believes "such exemptions would take the overall tax burden away from businesses and lay it heavier on homeowners and other individuals, making the property tax even more unfair."[2]
A Taxpayer's Perspective from the National Taxpayers Union
Proposition 5 would allow voters in small communities (less than 10,000 population) to enact a property tax abatement of up to five years for slum or blighted land to encourage economic development.
Election results
The initiative passed with 684,510 voting for it (66%) and 352,579 voting against it (34%).
See also
References
External links
- Proposition 5 language
- Texas House Research Organization, Constitutional Amendments Report
- Quigley TIF Report
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