There are a number of threads running through the posts on this blog about Austin and Texas. One key aspect of them is how things get paid for, and what gets paid for. Since Texas(bigger than Germany, approx. 7/8 the Population of Germany) has no income tax, as boasts about it’s low corporate taxes, apart from the 6.25% sales tax, property tax is key.

Property tax, the valuation and assessment of properties has become both increasingly complex, and for many long term residents, unaffordable. Among those arguing for greater density in Austin, there are calls for better transportation, more affordable rents etc.

The fact that Caesar Chavez currently has more high rise development than any other street in America, added to all the stories and blatant self promotion that Austin in #1 in this, no.1 in that, highest ranked for everything has lead to a typical Texas business friendly “gold rush” over the last 10-years, eight of which have been presided over by rail-or-fail Mayor Leffingwell.

All this has lead to massive gentrification of the core and central neighborhoods. Development and re-development in itself isn’t evil, it’s the nature of the development and the context it’s done in. However, when that development is done by forcing people who’ve spent their adult lives in a neighborhood out, because they can no longer afford among other things, the property taxes, thats just plain wrong and bordering on financial exploitation.

Imagine, you were a hard working manual worker, domestic, construction, yard, office, transportation, etc. in the late 1970’s in Austin. A very different place. South of the river was mostly for the working poor, as a legacy of the cities 1920’s policies, east of I35 for the racially segregated families. You’ve struggled in the heat with no central a/c, poor transport options, typical inner city problems. Your do what you can to plan for your retirement, depend on federally provided health programs and finally you get to retire in your late 60’s.

Then along comes the modern, gold rush Austin. A few people, often like me, move into your neighborhood because we want something authentic, real rather than remote, urban sprawl neighborhoods. Sooner or later, business spots the opportunity to take advantage of the low property prices, the neighborhood starts to pick-up and before you know it, your meager retirement can’t afford the property taxes that are now annually more than the price of your house from 40-years ago.

Few people seem to understand the emotional, and stressful impact of having to even consider moving, let alone being financially relocated in your reclining years. It changes virtually every aspect of your life. One possible solution to this, and some of Austins other problems is the “accessory dwelling”. I’ll return to ADU’s in a subsequent post, it isn’t a simple as just making then easier to get permitted an built though.

With the City of Austin, typically for Texas, siding with business and refusing to challenge commercial property tax appraisals, the burden falls on private homes. That’s why it is important for everyone to protest their appraisals until the existing system changes.

If you don’t understand how the system works, and more importantly, why you need to protest, the Austin Monitor has a great discussion on soundcloud.

While I can see my obvious bias, as I said in my July 4th post, I for one would rather opt for a state income tax, even if that meant I would end up paying more tax. That though is very unlikely to ever happen in Texas, and so until then we have to push back and get to a point where businesses and commercial property owners pay their fair share.

Why bias? Well, I’m in my 50’s, I won’t be working for ever, and my income will then drop off sharply. At least as it currently stands, I plan to stay were I am.