Taxes

Currently, Missouri City is saddled with higher property taxes than any of our neighboring communities. As a result, both potential homeowners and businesses tend to look elsewhere when moving to Fort Bend county. This difference between the tax rates makes Stafford and Sugar Land a better value for the buyers.

As a result of increased spending and higher taxes, we have many homes that remain on the market for extended periods of time and an abundance of vacant commercial properties.

All too often it is suggested that various forms of taxation bring about a better life for those who are taxed. We see this claim quite often when we look at taxing districts such as Public Improvement Districts (PIDs) and Municipal Management Districts (MMD’s). Our elected officials proclaim that these types of  arrangements will allow the development, improvement or revitalization of a specific area. What these all have in common is the old example of robbing Peter to pay Paul.

Recently the municipal government’s mishandling of the TIRZ districts was brought to light. These districts are designed for “revitalization” of an area. In order to understand this arrangement consider the following:

• A TIRZ is declared and a “plan” promoted to redevelop a geographic area.
• Vendors in the area are allowed to join together with respect to the acquisition of goods and services, thus reducing costs.
• Savings are reinvested in the community, including capital improvements, which increase the value of the land.
• Increases in tax revenue are targeted back into the community in the form of infrastructure development and bond issuance, again increasing ad valorem tax values (increasing property tax values).
• The cycle continues until the TIRZ is dismantled.

On the surface, the system seems harmless if you don’t mind the increase in property taxes. However, what is truly lacking is judicious oversight and cuts in the ad valorem rate, which would spurn even more economic activity within the area.

In certain sections of our city, there are up to seven (7) layers of ad valorem taxation on home and business owners. This burden only serves to stifle economic growth and causes a level of animosity between business owners, home owners and the city.

Consider for a moment that “tax abatements” in Missouri City are only given to very large business entities which, though offering employment and increasing sales tax revenue, are not the traditional backbone of our economy. When we look at municipalities such as Stafford, we see a completely different structure. Stafford has made their business community very inviting by assessing no property taxes on either the home owners or the business owners. This has caused businesses to flock to Stafford and increasing their sales tax revenue dramatically.

I am not suggesting that we follow Stafford’s model. However, I am suggesting that decreasing the tax burden and lowering the tax rate would facilitate economic growth and increase revenue.

Let me be clear on one point. I do not like the idea of paying “rent” on property that I supposedly own. I can envision a day when we dispense with ad valorem taxes all together. However, in the interim, I will work tirelessly to reduce spending and decrease the property tax rates which will increase the appeal for potential homeowners and business owners when considering Missouri City as a new home.

Having increased economic activity will help our ability to reduce property taxes. Tax abatements should be offered to businesses as an incentive to redevelop the Texas Parkway, Cartwright and Murphy Road corridors. Increasing commerce will result in growth and better economic opportunities for all members of our community.