HOUSTON - June 2, 2006 - Harris County Tax Assessor-Collector Paul Bettencourt has released the results of a recent analysis by his office estimating that House Bill 1 would lower property taxes on the average Harris County home by only $23 next year, followed by an expected decrease of $268 the following year.

        “Any tax relief is good, but the relief offered to Texas homeowners this year would have been considerably more had the Legislature lowered the current annual appraisal cap from 10 percent to 5 percent,” said Bettencourt. “Unfortunately, that legislation was never debated. And with Houston and Dallas remaining two of the nation’s hottest real estate markets, it looks like appraisal creep - or appraisal leap - will be with us for at least two more years.”

        Tax Office figures show the average taxable value of a home in Harris County in 2005 - with homestead and other residential exemptions included - was $110,110. The 2005 tax bill on that home would be $1,909. Adding an average expected appraisal increase of 6.84 percent in 2006 brings the value of that home to $117,641. And despite the lowered tax rates as a result of House Bill 1, the 2006 tax bill on that home will be $1,886 - or only $23 less than the year before. The same home will rise in taxable value to about $125,876 in 2007, but significant rate cuts from House Bill 1 will lower the tax bill to $1,618 - a $291 cut over two years.

        “We were unable to estimate the effect of this legislation in 2008 simply because too many factors remain unknown,” said Bettencourt. “A compression ration, to be set by the state education commissioner, the possibility of voter approval for tax rate changes or rollbacks and discussions by the leadership in Austin of structural changes in the law just make any estimates for 2008 too unpredictable at this time.”

        Attached is the analysis of the legislation on homeowners in 20 Harris County school districts. Mr. Bettencourt will be available to discuss the implications of his office’s study and the effects of recent tax legislation. To schedule an interview, please call Joe Stinebaker at 713-368-2318.

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