Leo Vasquez

Let’s Be Clear About This

Let’s Be Clear About This

I am proud to serve as the Harris County Tax Assessor-Collector & Voter Registrar.  With the support of the citizens of Harris County, I hope to continue to serve in this capacity for many years to come. 

I have greatly enjoyed the opportunity to meet the taxpayers and voters over this past year at the many breakfasts, luncheons, civic groups and official meetings and functions where I have spoken or attended.  It is valuable to have these personal interactions with and hear directly from constituents.  I have tried to educate everyone on the functions of the Harris County Tax Office and give a better understanding of how your government works for you.  I have also tried to provide an introduction to my background and my philosophy that government needs to operate less like a bureaucracy and more like a business – a concept which is well-received.  However, given the short time allotment during a typical breakfast club meeting, it does not allow me to fully define some basic tenants and principles in which I steadfastly believe.  So let’s be clear about this:

Limited Government
My position is that limited government is good government. We need less regulation and less interference with legal commerce and trade. The government, on all levels, should first take the perspective of staying out of people’s businesses. However, with that said, we still need to look toward the government for maintaining our common good (e.g., roads, firemen, police, schools, prisons, etc.). That common good takes money, and in Texas we pay for much of that through property taxes.

Property Taxes
The Texas property tax system is not perfect, but it is what we have. Until the state legislature comes up with a new plan, it is up to county Tax Offices to continue with our efficient, fair and uniform collection of property taxes. Of course, in this case, the definition of “fair and uniform” is limited to the same application of appraisal techniques and tax rates to all the properties within a given county or jurisdiction. The current Texas system is unfair to so-called “wealthy” school districts whose local taxes get taken and sent off to other parts of the state. It is also unfair that citizens are being taxed on unrealized capital gains as the appraised value of their home rises over time. Tax values should remain fixed until a property is resold or improved. If a jurisdiction feels it needs more money to operate, then the elected leaders of that jurisdiction should have to openly vote to raise the tax rates.

Improvement of appraisal cap system
The Texas legislature has taken positive steps to place appraisal caps on residential homesteads, which is an important step in the right direction and is a system which must be maintained. We need to urge our state legislature to set the appraisal caps at 5% annually. As an interim step, I advocate that we enhance the current appraisal cap system to limit year-to-year taxable value increases to the lower of 10% or the rate of inflation plus population growth.

However, that does not go far enough. Business owners should also enjoy appraisal caps on real property. Just like it is ridiculous for a homeowner to have to pay 50% more in property tax from one year to the next for the exact same house, a business owner should not be unduly burdened with an equally unreasonable increase in year-to-year value. A business owner needs to be able to plan for cash flow just like a homeowner.

Living within your means
Governments need to spend within their means. The Harris County system appears to work reasonably well, with the Budget Office providing early-warnings to the Commissioners Court regarding expected diminishment of future cash flows, and the experienced Court members take steps to start planning in advance. Unfortunately, too many jurisdictions do not take such proactive measures. Instead, jurisdictions frequently find other measures to hide the true state of their income versus expenses.

Current income for current expenses
Long term debt should not be used for short term expenses. An individual taxpayer uses a long-term mortgage to pay for a house, not for paying their monthly water bill. Public debt should only be used to pay for long-term assets (such as a new school or new infrastructure). Using long-term debt to balance a current budget is a recipe for long-term disaster. We must all speak up when we see this occurring.

Paying for public debt requires taxes
Jurisdictions also should not attempt to characterize issuance of long term debt (bonds) as “no tax increase” just because their maintenance and operations budgets did not increase. To the contrary, jurisdictions should be upfront with the voters about financings. If the jurisdiction’s leaders feel that a new school, admin building or stadium is needed, let the taxpayers vote on the bonds up or down. It is the taxpayers’ money.

Term-limit the TIRZ
Tax Increment Reinvestment Zones (or “TIRZ”) should be “term limited” in order to pay for the specifically designated improvements to an area, and then the tax revenue should be put back into general fund stream.

Limit spending growth
An increase in tax revenue is an increase in taxes! Jurisdictions should never try to hide that fact. As our Texas population grows, our jurisdictions will correspondingly need more funds to serve that growing population. However, we must work to limit growth in spending to less than the growth in population + inflation. Government should gain efficiencies just like a private sector business.

It is easy to yell and scream about lowering tax rates when the taxable property values are increasing by ten percent year after year after year. Unfortunately, while Harris County and Texas are in better positions relative to the rest of the country, we will be lucky to even maintain the same tax base through 2011. Our taxing jurisdictions must resist the urge to raise rates. Instead, they should focus on belt-tightening, prioritizing needs and gaining efficiencies during periods of economic downturn and revenue reductions. They should behave like individual households who have to live within their means and cannot simply “demand a raise” of their wage rates. – The flipside of this coin is that when property values are falling and jurisdictions are already having cashflow squeezed, it is irresponsible to argue for property tax rate cuts at that time.

Seek efficiency & optimization
Taking the glass-is-half-full, good news perspective, government organizations typically provide ample available opportunities to enhance efficiencies, utilize technology and maximize performance. And performance should be measured as it is in the private sector. Government should not be a “jobs program” and public sector leaders must get rid of under-performers in their organizations. Furthermore, government should not be utilized as a personal fiefdom for elected or career public servants. If the private sector can provide a necessary service in a more cost-effective manner while maintaining or raising service levels, then let’s shrink the government and outsource to the private sector.

Coordinate government!
Coordination of government jurisdictions also provides great opportunity for efficiencies, cost-savings, and increased levels of service for the taxpayers. For instance, why can’t the Harris County Tax Office also provide collection services for the Harris County Toll Road Authority, Harris County Courts, Houston Metro, etc.? Why should a citizen have to drive around to three or four or more government offices? Government entities should work together to provide better services and have fewer layers of government and bureaucracy.

In summary
So let’s clearly summarize my primary points:

1. Government needs to operate less like a bureaucracy and more like a business.
2. Limited government is good government.
3. Elected leaders of jurisdictions should have to openly vote to raise the tax rates if a jurisdiction feels it needs more money to operate.
4. Appraisal Caps should be lowered to a 5% annual cap. As an interim step, I advocate that we enhance the current appraisal cap system to limit year-to-year taxable value increases to the lower of 10% or the rate of inflation plus population growth.
5. Business owners should also be protected by appraisal caps on real property.
6. Governments need to spend within their means.
7. Long term public debt should not be used for short term expenses.
8. Let the taxpayers vote on whether to approve new public debt.
9. TIRZ should be “term limited.”
10. An increase in tax revenue is an increase in taxes. I will not let jurisdictions try to characterize it otherwise.
11. Laws should be enacted to limit growth in a jurisdiction’s spending to less than the growth in population + inflation.
12. Government should gain efficiencies just like a private sector business.
13. Government should not be a “jobs program.”
14. Government entities should work together to provide better services and have fewer layers of government and bureaucracy.

This is by no means an all-encompassing final list of important issues on which I feel strongly. There are many more issues, details and associated nuances. However, there is also a fine line between “advocating” and “interfering.” My first and foremost responsibility is focused on efficiently and effectively running the Harris County Tax Office. As a good-government, fiscal conservative, I will continue to diligently work as a voice for the taxpayer. This is a year-round effort. We need to work together to reasonably advocate for responsible government and its financing, and I look forward to working with the citizens of Harris County in that effort.