Appraisal caps shift the tax burden to those who need the most relief.
Appraisal caps limit how much taxable property values can rise each year. This policy shifts the tax burden from high-growth areas of the county to areas where the values have been steady or declining.
Government distortion of the market means everybody else picks up the tax burden for the few people who benefit. Reasonable caps are already in place. The taxable value of a homestead before exemptions cannot rise by more than 10% per year, regardless of actual market value.
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- Lower appraisal caps benefit a few homeowners while increasing the taxes of many other property owners.
- Appraisal caps have an adverse impact on the real estate market, driving prices up and reducing turnover.
- There are other options, such as increased homestead exemptions, that better target those segments of communities that may need help.
- Appraisal caps distort the local economy, too, and form a barrier to entry for new businesses.
- Appraisal caps not only make the property tax appear unfair, they are unfair.