Thanks to an alert reader, I finally have an objective comparison of El Paso’s property tax rates compared to other U.S. cities.
The Minnesota Taxpayers Association publishes its 50 State Property Tax Study yearly. One section of it lists the top (most expensive) 50 property tax rates for homestead property by city.
For a home valued on the tax rolls at $150,000, El Paso was the sixth most expensive city amongst the nation’s 50 largest cities for the 2009 tax year. Our effective tax rate was computed at 2.252% of the property value. The average of the 50 cities was 1.325%. Our tax rate that year indexed right at 170% of that average. (I’m guessing that we might soon be at double the average.)
“Stop,” you say! Many of those cities are in states where they have income taxes, which we do not have. Well, let’s take a look at Florida, which also does not have a state income tax. Miami, Florida was at 1.454% vs our 2.252% during that same period, making our rate approximately 55% higher than the other sun city. Las Vegas was at 1.132%, a rate which is almost less than half our rate — and Nevada, too, doesn’t have a state income tax.
“Not fair” you say. “Compare El Paso to other Texas cities”. OK. Austin was 10th in 2011 at 2.061%, and at least Austin residents can see visible, tangible results both in services, quality of life, economic growth, etc.
How many times have we been told that something will only cost us $84 (or some other amount) a year on the average house? Well, all of those “onlys” have certainly added up. Our tax rate will continue to escalate as long as our city representatives and managers are allowed to continue on the current course of mismanagement.
In fact, for 2011 our “progressive” city management has managed to make us the 5th most expensive of the 50 major cities with a 2.357% tax rate compared to the average of 1.358%.
How about for businesses?
Texas does have a franchise tax on businesses, so El Paso should be closer to the national norm. Many feel that the franchise tax is more onerous than an income tax since it taxes gross income instead of profit.
In 2011, El Paso was the 7th most expensive city for industrial property taxes. We came in at 2.562% with the 50 largest city average being 1.503. That puts our tax rate at 170% of the average.
The effective tax rates for both residential and commercial/industrial property are among the first things companies look at when considering whether to expand or relocate their business. El Paso is not attractive. We punish our taxpayers. No wonder we have a hard time attracting jobs.
Perhaps one reason we have so much ambivalence among residents and voters is that we have a relatively lower rate of home ownership. Maybe a large part of the population is apathetic about decisions that raise taxes because they will get the benefit, but not the bill. After all, approximately 25% of El Pasoans live below the poverty level as compared to 17% for Texas as a whole. I’m thinking that I have some more homework to do.
We deserve better
Brutus
elpasospeak 