Texans voted in favor of Proposition 2 on Election Day. The resolution amends the Texas Constitution to allow county governments to issue bonds in order to fund infrastructure projects in "blighted areas". Conveniently, no definition of "blighted areas" was included in the resolution. County officials now get to create shady "tax increment zones" within their districts and issue bonds to fund projects in those zones. The bonds will supposedly be paid for by the future tax revenues created by the projects. These tax increment zones are often headed by unelected boards that are subject to very little oversight. So no we have more ways for governments to raise debt with even less oversight. What could possibly go wrong?
The measure passed despite a similar resolution being struck down by voters in 2011. The Texas GOP also issued a statement in opposition to the resolution, citing the likelihood of property tax increases if the resolution passed. According to an article by William Fulton of the Kinder Institute for Urban Research at Rice University, "Prop. 2 was promoted primarily by the State's contractors, who used the same political action committee, Texas Infrastructure Now, in 2015 to promote Proposition 7... Texas Infrastructure Now is run by Karen Rove, wife of legendary Republican strategist Karl Rove..."
Can you trust the government to use this new power responsibly?
Keep more of your money where it belongs; in your pocket. Contact Texas Tax Reduction today and let us make sure your property taxes are always as low as possible.
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