Texans are clamoring for property tax relief, but a real estate expert for the Real Estate Center at Texas A&M University urges caution when searching for replacement revenue. Californians know exactly what he’s talking about.
“In California, Proposition 13 was supposed to keep taxes down by limiting appraisal growth rates,” said Dr. Charles Gilliland, research economist. “But the benefits have been far from beneficial. Texans can learn from the changes Californians made and what ultimately went wrong.”
California voters passed Prop 13 in the late 1970s to limit annual home appraisal increases to 2 percent as long as the property’s ownership remained unchanged. Back then, there were predictions the move would cause assessed values to lag market values. Those proved to be correct.
“Decades later, the gap between California’s market and assessed values ensured that assessed values continued to rise even when home prices fell,” said Gilliland.
“Homeowners faced with…
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