Dallas Property Tax Increase Wrong for Residents

DALLAS -- On Monday, Sept. 13, the Dallas City Council voted to raise the Dallas city property tax rate by more than 6 percent. The old rate was 74.79 cents per $100 in property value. The new rate, which starts in October, will be 79.7 cents per $100 in property value. It may not seem like much, but it could have a seriously negative impact on the city.

Supporters and opponents of the tax rate hike showed up at the Dallas City Council meeting, and we were treated to a contentious war of words between council members and Mayor Tom Leppert. Leppert was vehemently opposed to the tax hike, but in the end, the council voted 8-7 to amend the 2010 Dallas budget to include the property tax rate increase in Dallas.

I have considered purchasing a home in Uptown Dallas, where the prices are reasonable but certainly not cheap. I was already concerned about the property tax rate prior to the increase. Dallas has the second highest property tax rate in northern Texas. Ft. Worth claims the top spot for high property tax.

Some city council members point out that the average Dallas home owner will "only" pay $60 more a year in property tax. I would point out to them that in this economy, every dollar matters. The Dallas housing market is continuing to grow at a slow rate at the moment. Housing prices have begun to slightly increase and are expected to continue growing at a steady pace in the long term. As housing prices increase, the amount of tax Dallas property owners will pay will rise as well. I'm not sure I want to be one of those property owners.

I wonder just how high the tax rate will continue to climb if I were to buy a home in Dallas. Will the rising property value of my new home become a financial stress because of the increased property tax that comes with it? I assume that I am not going to be the only person who reconsiders a move to Dallas.

Aside from the issue of me rethinking a move to Dallas, the property tax increase affects me in another way; as a consumer. Property taxes will be going up for Dallas business owners as well and they are no happier about it than I am. Business properties in Dallas can be valued at a million dollars or more depending on the size and location. A 6.5 percent property tax increase will certainly add up for those businesses. When a business is already struggling to stay afloat in the current economic situation, the last thing it needs is any tax increase. This may send some of the smaller businesses out of business altogether.

Dallas-area businesses, such as retail stores, are likely to pass on the cost of their property tax increase to their customers. I am one of those customers. I shop in Dallas, eat in Dallas and attend events in Dallas on a regular basis. The cost of doing all of those things in a big city such as Dallas is already expensive, so why make it more so? Also, what is the likelihood that new businesses will want to open their doors in Dallas when the city just approved the largest property tax increase in 20 years? Less businesses opening up will wind up costing Dallas property tax revenue in the long run.

I am sorely disappointed by the city council's vote to increase Dallas' property tax. I wish just one more council member had really listened to the people who showed up at their meeting to oppose the tax increase. Had that happened, I may have been living in Uptown Dallas next year instead of just passing through.