A sensible, doable tax relief plan for Kyle’s elderly property owners

(Truth in advertising. Truth No. 1: I am over the age of 65. Truth No. 2: I do not own property in Kyle.)

Although you might not know this because no one is publicly discussing it, the city manager’s proposed upcoming fiscal year’s budget is scheduled to be submitted to the City Council in little over a month. I must admit I am baffled by the realization we’re less than six weeks from that submission and, to date, the council has not been briefed even once on how that budget is shaping up. And, even more baffling, I find it distressing the council hasn’t agreed publicly on its priorities for the budget. But I’ll address those shortcomings in a later post when I make recommendations how the council should set a direction for the City and all future budgets and how the City can make the budget itself far more transparent and citizen-friendly.

But right now I want to make a recommendation for this year’s budget which is to initiate a five-year phase out of property taxes for Kyle’s elderly homeowners. This can not only be accomplished but in a way that will place absolutely no additional tax burdens on others. In fact, it won’t even reduce the amount of property tax the city currently receives. That’s right: Property taxes for those over the age of 65 — many, if not most, of whom are on fixed incomes — can be phased out without reducing the current amount of property taxes the City receives.

The plan is relatively simple. In Year One, the FY 2016-17 Budget, the property tax bill for elderly property owners would be reduced 20 percent; in year two, it would go down 40 percent; 60 percent in year three; 80 percent in year four and finally 0 in year five and thereafter.

Here’s why the plan works. According to figures graciously provided me by the city’s expert Finance Director Perwez Moheet (to whom I owe a huge debt of gratitude for getting these numbers for me), if elderly property tax owners were granted a 100 percent exemption this fiscal year, it would cost the city $1,142,000, a mere 1.04 percent of the total budgeted tax revenue. But in Year One, we’re only talking about a 20 percent reduction, which comes to $228,400.

Last month, Moheet told me he expected, based on figures released by the Hayes Central Appraisal District, Kyle’s homeowner valuations would increase 3.13 percent over last year’s. But let’s be really pessimistic here. Let’s say those valuations increase only 2 percent. Moheet told me a 2 percent increase would mean an additional $250,000 in property tax income. That’s still more than the $228,400 lost by beginning the phase out of property taxes for Kyle’s elderly homeowners.

That’s why, not only morally, but monetarily, such a phase out is sensible. It’s doable. And it’s the right thing to do for our elderly citizens.

Now I only hope someone on the City Council has the courage to propose this and make it a part of the FY 2016-17 budget.