Texas: Property tax for schools is unconstitutional


The Texas Supreme Court ruled that state mandates placed on local schools have forced local governments to raise property taxes to the state maximum. They said that its effectively a state-wide property tax, which is illegal in Texas.

Money for the $30 billion Texas school system comes primarily from local property taxes and franchise taxes. But both rich and poor school districts contend the system is unfair.

The high court found that overall school funding is adequate and that rich and poor districts have equal access to money. But the justices ruled 7-1 that the funding system amounts to a statewide property tax, which is unconstitutional in Texas.

The plaintiffs argued that the state contribution for local education is insufficient and that in order to meet all state and federal education mandates � such as the 22-student per class limit and minimum teacher salaries � they must tax at the limit prescribed in Texas law. That, they said, amounts to a single statewide property tax.

The money WILL come from somewhere, so it's only a matter of time before the law of unintended consequences will rear it's ugly head.


Category:  Schadenfreude
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Well, our lottery was supposed to pay for the schools, but someone "forgot" to write the statute so that the revenue goes to schools (which are run by the counties) and not the state General Fund (which is where the lotto money goes.)

Posted by: Phelps at November 30, 2005 3:23 PM

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