Booming economy may force Prop 2 refund
The Chronicle's Dan Feldstein reports that the city is enjoying such an unanticipated revenue windfall that it may soon be bumping up against Proposition 2:
To the surprise of city officials, Houston's tax revenue and other income is approaching the voter-approved Proposition 2 revenue cap that the city still is fighting in court.
The city had expected to stay under the cap in its current fiscal year, which ends June 30. Mayor Bill White acknowledged over the weekend, however, that unanticipated spikes in sales and property tax collections could bring the total close to the cap.
If revenues exceed the cap by more than $10 million, the measure approved by voters in 2004 calls for a rebate to taxpayers. It does not specify how that would be done.
Under Proposition 2, city revenue from all sources in any year can grow by no more than the combined rate of inflation and population growth.
[snip]
The city contends that it only has to enforce Proposition 1 because it passed with more votes than Proposition 2, and the two measures are contradictory.
Proposition 2 supporters challenged that position in court, and state District Court Judge Tad Halbach issued a summary judgment in January saying the city must enforce both measures. The city is appealing the ruling.
Because the decision is on appeal, it's unclear whether the city is legally obligated to enforce the Proposition 2 tax cap this year, White said. But the measure's supporters say they expect the city to comply.
"If they fail to, I can promise you we'll bring proceedings," said Andy Taylor, lawyer for Proposition 2 sponsors.
David Benzion is right: Taylor will almost certainly follow through on his promise if it comes to that.
I can't wait to get my refund. What about you?
Posted by Kevin Whited @ 05/01/06 11:10 PM | Print |
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