For Immediate Release - 01/12/99:

"Legislator Makes Good on Campaign Promise, Introduces Bills to Eliminate, Reduce 'Robin Hood' Tax Burden"

As promised during his campaign, Representative Kenn S. George (Dallas, 108), has introduced legislation on his first day of the Texas Legislature, aimed at eliminating the substantial burden that Robin Hood has imposed on homeowners in Texas.

According to Representative George, "During the 98-99 school year, in one of our school districts, Highland Park, taxpayers paid $58.5 million in school property taxes of which $30.5 million (52%) were recaptured by Robin Hood leaving $28 million (48%) for funding the school district's operations. Barely half of the local communities tax dollars are educating their children." George went on to say, "In the Lake Highlands portion of the district, schools are part of the Richardson ISD. The Richardson ISD is projecting to spend over $67 million in Robin Hood funds in the next two school years. Again, tax money paid by the citizens is not available to educate their children."

Another example of the destructive impact of Robin Hood taxes is while HPISD has experienced student growth of 27.5% over the last seven school years and an increase in operating costs due to inflation of 14-20%, tax revenues have been limited to approximately $4,800 per student since 1992, forcing Highland Park schools to cut funding for certain programs and rely heavily on private donations. "This is an unfair burden that the taxpayers in my district should not have to shoulder." HB798, if enacted, will remove Robin Hood recapture from tax levies for local enrichment. The Supreme Court in Edgewood IV held that its revenue equalization requirement only applies to the funding of the costs of an accredited education. Rep. George's bill uses the Supreme Court's definition and cost of an "accredited education" at $3500 per student. Any tax revenue in excess of $3500 per student would be classified as local enrichment as allowed in the Edgewood IV ruling. HB612 is aimed at reducing the tax burden that homeowners must bear. Homeowners, unlike businesses, cannot pass on the Robin Hood tax burden to others. With the passage of Rep. George's bill HB612, homeowners in school districts that grant the optional homestead exemption would see their assessed evaluation and therefore their tax bills reduced by the amount of the optional homestead exemption granted by the local school district. HB613, if passed, would completely eliminate the Robin Hood tax scheme. It provides for a graduated raising of the property wealth per WADA from its current $280,000 to $850,000 by the year 2003.

According to Representative George, "These three bills will reduce or eliminate the tax burden suffered by so many in Texas and especially my district while staying within the bounds set forth by the Texas Supreme Court. I think we have found a way to both educate our children, and reduce our property taxes."


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