This week, the Austin Independent School district eliminated the property tax exemptions for historic properties. Apparently, the exemptions for these vintage homes and buildings was breaking the bank in a tight budget year. Problem is, according to the Statesman, AISD will net less than $100,000 as a result. That's because, although a total of almost 2 million extra tax dollars will now be collected, the state's recapture formula for schools sends most of that cash to the State of Texas to educate others outside our community. The debate about the fairness of that is for another time, but the fact remains that AISD is ultimately helping to diminish the imputed higher value that otherwise accrues to historic properties because of the tax advantage of owning and renovating them. It also serves as a lesson to school children that history has little value in our community.
AISD is short sighted. A possible resulting drop in historic property values due to the exemption loss could easily wipe out any $100,000 gain the district receives this year. Most would agree the State of Texas should focus on other ways to balance it's budget. Already the "rich" AISD sends millions of local tax dollars to the State of Texas. Now AISD property owners will send even more money to the Lone Star State by further increasing the "value" of our tax base and making the district even "richer".
Perhaps this is just a political statement about giving tax breaks to those who supposedly don't need it. Who knows. One thing is true however, people are drawn to those communities that value history and a sense of place. Once torn to shreds, historic fabrics can never be rewoven. Downtown Austin, Texas, Downtown Georgetown and places like it owe a big part of their success to the 100+ years of history that is still evident on most street corners. People invest in places they like and hold dear, driving property values higher and creating more tax revenue for jurisdictions like school districts. This is something we should continue to encourage.
Contact me at jeff@trueaustinhomes.com
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Jeff Harris
Mortgage & Real Estate Broker
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