This ARTICLE On Eliminating Property Taxes Proves It Works For Town In Texas Was PUBLISHED On October 29th, 2019
Property taxes are how most communities pay for their schools, city services, police, fire, and other expenses.
- Lately, high property taxes have been concerns for many homeowners
- Many cities with budget deficits resort to raising property taxes to cover their financial shortfalls
- States that have high property taxes are forcing taxpayers to leave to other low taxed states
- High property taxes devalue home values
- For example, DuPage County Illinois home values dropped 24% since the 2008 Great Recession while property taxes went up 7% while the nation experiences a housing boom
- High property taxes are making homeownership unaffordable to retirees and homeowners with fixed income
In this article, we will cover and discuss Eliminating Property Taxes Proves It Works For Town In Texas.
Profitable Versus Nearly Bankrupt Communities
We are not be going to bash any politicians nor political parties on this blog.
- However, many lawmakers do not seem to realize that you need to run city, county, and state government like a business
- It is not how much you make but what you spend
- Why are certain states like Florida, Tennessee, Kentucky, Texas, Georgia, Alabama, North Carolina, Colorado booming but certain states like Illinois and New York on the verge of bankruptcy?
- The simple answer is financially stressed states are led by incompetent politicians
- Thriving states normally has low taxes. Tennesse, Florida, Texas and a handful of other states do not have state income taxes
- States without state income taxes are attracting new businesses and taxpayers in droves due to its tax-friendly status
- Illinois is raising taxes on existing taxes and creating new taxes
However, Illinois is not cutting spending. J.B. Pritzker, the current governor, has even given all state lawmakers pay raises when the state is on the verge of bankruptcy. Pritzker has recently doubled the gas tax in Illinois.
Eliminating Property Taxes Proves It Works For A Small Texas Town
Eliminating Property Taxes has been proven by a small town in Texas. Large U.S. cities that are broke and have taxpayers fleeing their state should take notice of Von Ormy, Texas. This small Texas town is growing and is now on the map by many politicians in financially strapped communities. The Town of Von Ormy, Texas refuses to collect property taxes from real estate owners. Von Ormy is under the leadership of Art Martinez de Vara. In 2014, Mayor Art Martinez de Vara issued his proposed 2015 city budget. Eliminating Property Taxes was on the top list of his proposal.
Great Leadership By The Mayor And City Council
In 2015, the Town of Von Ormy City Council voted to reduce property taxes by 10% annually until the rate was down to zero.
- Von Ormy City Council members were in full agreement that the town gets its revenues from other taxes
- Council members banked on getting revenues from sales taxes, franchise fees from utilities, permits, and other fees
- The city took a step further and beefed up its reserve funds
- The town has more than enough reserves to cover operations for more than a year in the event of an emergency
Von Stormy, Texas was ranked as the lowest cost of living in the San Antonio area.
Little Regulations And Little Taxes Make The Profitable Communities
Businesses and taxpayers move to communities with low property taxes, low sales and income taxes, and low cost of living.
- Cities, Counties, and State governments thrive and rake in billions by increasing their tax base
- Attracting new businesses and taxpayers is not rocket science
- What would you do to relocate to a new community and/or state?
- Low taxes, low property taxes, low-income state taxes, affordable housing, thriving community, ample jobs, and low cost of living
- This is why communities like Von Stormy, Texas is thriving and cities like Chicago are on the verge of bankruptcy
- Chicago has the highest taxes in the nation
- High taxes, tons of regulations, and high fees and costs on city government services is what makes taxpayers leave a community
- Chicago and the state of Illinois are experiencing a mass exodus of businesses and taxpayers due to increasing taxes and new taxes
- Recently, Midland Metal Products moved its facilities from Chicago to neighboring Hammond Indiana
- The reason for the move was due to Chicago’s increasing taxes and ridiculous regulations
The Chicagoland area lost 150 jobs while Hammond Indiana gained 150 jobs. Midland Metal Products was based in Chicago since its creation 98 years ago. More and more taxpayers are leaving high taxed communities. Politicians need to think outside the box like Von Ormy, Texas officials. Do not try to reinvent the wheel. Eliminating property taxes work. Consult with city leaders of communities like Von Ormy, Texas and learn what they are doing. If your state is in financial chaos, check with leaders of profitable states like Florida, Tennessee, Kentucky, and others where they are raking in billions and attracting countless businesses and taxpayers. This is a developing story on Gustan Cho Associates Mortgage News. We will keep our viewers update on developments.
October 29, 2019 - 4 min read