Fellow Patriots,

Nicholas Kreekon heads Texas T.E.A. For Property Tax Relief. A growing chorus of Rockwall County community leadership that meets at TR Restaurant & Grill, 101 N. Goliad, Rockwall, Texas 75087, every First Saturday at 8:00 am to learn about taxation and to cooperatively develop practical strategies to hold down government spending, while assuring our citizens are reasonably served by local and state agencies.

You can contact Nicholas via email: nkreekon@verizon.net

It’s all about your money, your family and your future. Join us to conserve our God-blessed country for future generations. Please review Nicholas’ schedule of goals and make plans to join us at TR Restaurant & Grill, where you can enjoy great coffee drinks and tasty breakfast while you participate in the discussion.

JNW

OCTOBER 19, 2009

IMMEDIATE GOALS	IMMEDIATE ACTION	IMMEDIATE RESULT	MID TO LONG TERM	LONG TERM GOALS
			ACTION
FREEZE TAX RATE (LOCAL)	INTERVIEW ALL LOCAL PRIMARY CANDIDATES FOR THEIR RESPONSE (COUNTY)	PUBLISH RESPONSE OR ENDORSE CANDIDATES	STATE TO FUND GREATER PERCENT OF SCHOOLS TO REDUCE PROPERTY  TAX
	INTERVIEW ALL CANDIDATES IN PARTISAN AND NON PARTISAN ELECTION (COUNTY, SCHOOL, CITY)	PUBLISH  RESPONSE OR ENDORSE CANDIDATES
APPRAISALS (LOCAL)	TALK TO RCAD ABOUT APPRAISING ON MARKET VALUE STATE LAW REQUIRES MARKET VALUE	PUBLISH RESPONSE	INDIVIDUALS PROTEST APPRAISALS BASED ON MARKET VALUE  AND WITH TEA HELP	ELIMINATE ALL COUNTY CENTRAL APPRAISAL DISTRICTS STATE TO FUND ALL LOCAL ENTITIES TO CAP LOCAL PROP TAXES TO 1% OF PURCHAS PRICE.
RETURN FUEL TAX TO COUNTIES (STATE WIDE)	SPREAD WORD STATE WIDE	ELECT ONLY STATEWIDE CANDIDATES THAT AGREE	IN 2011 LEGISLATURE VOTE IN TO EFFECT
ROYALTIES TO LAND OWNERS IN PATH OF TOLL ROADS.	STATE WIDE	ELECT ONLY STATEWIDE CAND. WHO AGREE	IN 2011 LEGISLATURE

 TALKING POINTS

 

1) FREEZE TAX RATE: PRESENT TAX RATE IS ABOUT 2.5% ON APPRAISED VALUE OF HOME. THIS TRANSLATES INTO ABOUT 6 TO 12% OF ADJUSTED GROSS INCOME ON YOUR IRS TAX FORM. AND FALL BEHIND ON TAXES, HOME CAN BE TAKEN AWAY AND SOLD FOR TAXES. PROPERTY TAX IS INDEXED TO GO UP AN AVERAGE OF 5% PER YEAR, THANKS TO APPRAISALS AND TAX RATE INCREASES.

ASSUMING THIS SCENARIO CONTINUEs, A BUYER TODAY STARTS WITH PAYMENTS ON PROPERTY TAX EQUAL TO ½ THE MORTGAGE PAYMENT. IN 15 YEARS THE PAYMENTS WILL BE EQUAL TO MORTGAGE PAYMENTS.  WHEN HE RETIRES, THE PROPERTY TAX PAYMENTS WILL EQUAL 4 TIMES HIS FINAL MORTGAGE PAYMENT.

 PROPERTY TAX IS THE RENT YOU PAY TO STAY IN THE HOME YOU THOUGHT YOU OWNED.

 THE LARGEST RECIPIENT OF LOCAL TAXES (SCHOOLS) DETERMINES POLICY AT THE APPRAISAL DISTRICT.

 SCHOOLS ARE FUNDED AS FOLLOWS:

            25% OF FUEL TAX

            100% BUSINESS FRANCHISE TAX.

            60% OF PROPERTY TAXES

            STATE FUNDING VS PROPERTY TAX = 40% TO 60%

APPRAISALS

ROCKWALL COUNTY TAX APPRAISAL DISTRICT DOES NOT USE MARKET VALUE TO APPRAISE YOU HOUSE.  THEY USE A COMPLICATED FORMULA THAT NO ONE CAN UNDERSTAND.  IF YOU HAVE EXTENUATING CIRCUMSTANCES, LIKE EASEMENTS THAT PREVENT YOU FROM BUILDING.  PROXIMITY TO HOSPITALS, ETC. APPRAISAL DISTRICT WILL NO ACCEPT THAT AS AFFECTING YOUR PROPERTY VALUE. HOWEVER, THE STATE ARBITRATOR WILL.

ELIMINATE APPRAISAL DISTRICT AND TAX ONLY ON THE PRICE PAID FOR THE HOME. HOMES TURN OVER ON AN AVERAGE OF EVERY 7 YEARS. (COULD CONSIDER A SMALL TAX ON THE PROFITS MADE AT THE TIME OF SALE.)

FUEL TAX RETURNED TO COUNTIES

 WE PAY 18 CENTS AND 20 CENTS PER GALLON TO FED AND STATE RESPECTIVELY.  THE FEDS KEEP 15% AND RETURN TO THE STATE.  THE STATE EARMARKS 25% OF STATE TAX TO SCHOOLS.  THE REST OF THE FED AND STATE TAX IS DIVERTED TO OTHER ENTITIES THAT SHOULD BE FUNDED FROM THE STATE GENERAL FUND.

 BECAUSE OF THE DIVERSION OF FUNDS, TXDOT HAS NO MONEY TO BUILD STATE HIGHWAYS. THEY ARE ESSENTIALLY OUT OF BUSINESS FOR BUILDING NEW HIGHWAYS, AND HAS BEEN FOR SEVERAL YEARS.  LAST LEGISLATIVE SESSION, THE GOVERNOR CALLED A SPECIAL SESSION TO DEAL WITH TXDOT.  THE GOVERNOR NEARLY “SUNSET TED” TXDOT.  HE GAVE THEM ENOUGH FUNDING TO OPERATE THE DEPARTMENT BUT NOT ENOUGH TO BUILD HIWAYS.

 TWO YEARS AGO TXDOT TOLD ROCKWALL COUNTY LEADERS THAT IF ROCKWALL COUNTY PAID FOR THE DESIGN AND ENVIRONMENTAL STUDIES FOR STATE HIGHWAYS IN ROCKWALL COUNTY, THEN TXDOT WOULD COME UP THE REMAIN FUNDING TO BUILD ALL THE STATE HIWAYS IS ROCKWALL COUNTY.  THIS AMOUNTED TO 100MM CONTRIBUTION FOR THE COUNTY AND 400MM BY THE STATE.  THERE WOULD BE NO CONTRACT; THE COUNTY WOULD HAVE TO INVEST $100MM GAMBLING THAT TXDOT WOULD HAVE MONEY IN THE FUTURE. THIS APPEARS TO BE A “BAIT AND SWITCH” IN THAT THE COUNTY WILL COMES BACK TO THE TAX PAYERS FOR MORE FUNDING OR JUST BUILD A PART OF THE PROJECT.

 IF THE STATE RETURNED ALL FUEL TAX TO THE COUNTIES, THE COUNTIES THEMSELVES COULD MAKE UP THEIR MINDS REGARDING HIWAYS VS THE STATE DECIDING WHO GETS THE MONEY.

 I ESTIMATE THAT COUNTIES COULD REVOKE 75% OF FUEL TAX SENT TO THE STATE. OR ABOUT $10MM A YEAR.

ROYALTIES PAID TO LANDOWNERS IN PATH OF TOLL ROADS

 IF OWNER OWNED AND LIVED IN HIS LAND, THEY HE WOULD RECEIVE A ROYALTY EQUAL TO THE VALUE OF THE LAND PAID BY THE STATE IN ACQUIRING HIS LAND.