http://news.yahoo.com/s/ap/20051122/ap_on_re_us/texas_school_finance Texas Property Tax Ruled Unconstitutional Associated Press Writer AUSTIN, Texas - The Texas Supreme Court declared Tuesday that the property tax system that supports the state's public schools is unconstitutional, and it gave the Legislature until June 1 to come up with a new way to pay for education. Texas lawmakers have been struggling with the question of school finances for more than a decade, and the latest ruling adds urgency to the dispute. Money for the $30 billion Texas school system comes primarily from local property taxes and franchise taxes. But both rich and poor school districts contend the system is unfair. The high court found that overall school funding is adequate and that rich and poor districts have equal access to money. But the justices ruled 7-1 that the funding system amounts to a statewide property tax, which is unconstitutional in Texas. The plaintiffs argued that the state contribution for local education is insufficient and that in order to meet all state and federal education mandates — such as the 22-student per class limit and minimum teacher salaries — they must tax at the limit prescribed in Texas law. That, they said, amounts to a single statewide property tax. The high court did not order state government to spend more money on local education, and declined to offer its own solution. However, the ruling does require the Legislature to change the manner in which money is collected and distributed. Legislators have tried to amend the constitution to allow a statewide property tax but have always failed to draw enough support. "This deadline is a real hard, firm deadline," said state Rep. Dan Branch. "At that point, you can't finance schools the same way, you have to make the system constitutional, otherwise you run the risk of not being able to open schools in August." The Legislature has been unable to agree on a new school finance package during the last two regular sessions and three 30-day special sessions. Gov. Rick Perry office's had no immediate comment. For the Legislature to act before summer, Perry must call lawmakers back into another 30-day special session. After the Legislature failed to reach a solution over the summer, Perry named a commission to recommend ways to restructure school finances. It met for the first time Monday.
No - it's just the methodology of the property tax that's in question. Most likely, not a lot will change but the way the money gets distributed will be adjusted. A state income tax would require voter approval and will never pass. This has been expected for quite a while now, and is why we had several special sessions over the last few years to try to solve school finance. Without the threat of a deadline, though, nothing got done.
Not necessarily ... I think they're gonna need a constitutional amendment to get statewide income tax too. They can't get support for state property tax amendment. Stands to reason they're unlikely to get support for state income tax amendment .... dunno about sales tax though ...
Is it still that the money in your school district comes from the property tax in the area? meaning that poor areas have the least funding and rich areas get too much funding? I read a case on this in Con law and it didn't seem like the brightest way to fund schools. I think its the method that is unconstitutional, right? they just need to consolidate all the money and distribute it fairly is all. Let there be caps and collars to how much a school should get.
nyquil but homes are where the wealth is stored. if the state of texas starts income tax i doubt it would be progressive like the fedearl income tax. in fact most likely it would be tremendously regressive.
Someone more familiar with the issue please educate me. My understanding is that years ago, Texas was successfully sued because school funding was ruled unconstitutional because it was too unequal. The state finally solved that problem but was then sued again because the funding was too equal (i.e, the net effect is too close to a statewide property tax). The only solution is either (1) to remove the constitutional ban on a state property tax or (2) to implement a state income tax. Since #2 will never happen, is #1 the only remaining solution? Would welcome a response by someone knowledgeable on the subject.
who said anything about income tax? that's the largest incentive for moving into texas! using property tax to fund the schools is fine, they just need to do it more fairly and efficiently.
The first part is correct. The second part, though maybe the effect in practice, is not the issue. What has been essentially ruled unconstitutional is that the state requires localities to fund their schools, but then limits the cap of the property tax. As schooling has gotten more expensive, almost all the districts have reached the property tax cap. That's still fine - except that the state has made a statewide property tax unconstitutional, and then essentially created a statewide property tax. The simple solution would be to nix all the local property taxes, have one statewide property tax, and distribute the money exactly as its currently being distributed. This would be legal based on the current court rulings. However, you'd have to have a voter-approved state property tax. Essentially, the first court case deemed the distribution to be unconstitutional. This case now deems the revenue collection unconstitutional. Two separate, although related, issues. I think the net result will be the state taking more of the burden and reducing local property taxes. The state will just raise the sales tax or something like that. A more comprehensive solution is needed, but the political will isn't really there.
Thanks for the clarification. Sadly, you are probably right. Raising the regressive sales tax is exactly what Republicans would do. Texas has got to be the most regressive state in the Union already! (when it comes to taxes).
This last Legislature has to rank as the worst one in... well, I don't know anyone close to the goings on around the Capitol that can think of a worse example of leadership. The Republicans have had their chance of running this state's government, and have completely bungled it. Botched it. Blew it. Hell, none of that does justice to the incompetence that has been on display. And we cannot forget the few officials elected statewide. The Governor's one measure of distinction is that he somehow managed to look smarter than the President during Katrina. Admittedly, that's a very low bar to cross, but still a real achievement for Perry. Craddick is a pathetic joke. I know he's not elected statewide, but I had to get that in there. The Lt. Governor was going to be the one logical savior of this crew, but he caved early. We're in deep poo. No question about it. The monkeys are running things. Keep D&D Civil.
Property tax is a stupid, feudal system in a non-property economy. We should nix all property tax and establish a state income tax with NO exclusions or exceptions. Churches, Mega-churches, schools, hospitals - pay up. You are part of the economy. A dollar is a dollar. Our franchise tax system is stupid. Kill it. Straight income tax. A corporation is just another person - pay the same rate. We have a lot of money in this state tied up in law, accounting, finance - these pay very little to NO tax, because the dollars they generate are not directly related to square footage useage. Corporate profits from our oil, chemincal and technology industries are woefully under-represented in the public revenue scheme. All people - and corporations are just extensions of the idea of "people" - benefit from a state public education system, state roads, bridges, and drainage systems, and state public health. As Texans, we are taught to have pride in individualism and we reflexively kick against state income tax. This is selfish and stupid, a folly we should rally to let go. We are ultimately not seperable from our enviornment. We are part of our community. So-called "conservatives" are ridiculously irresponsible in this atomistic thinking, lacking a sense of responsibility and community. They would make terrible boy scouts. Our so-called democrats are no better, caught in a spiral of finger-pointing, race-baiting and labor-coddling. If we want a better state we all need an educated, healthy people with good roads , drainage, and communication systems. I cannot understand why it is so fricking hard to just say what we need and go do it. We have plenty of money and talent - we're just shoving it into temples for the untaxed - gorgeous hospitals that do almost no public work, employing green card serf labor, surrounded by roads that crumble, full of uneducated local people using emergency medicine for basic care.
