IS STAYING THE SAME ACTUALLY A INCREASE?

The value of properties in Corpus Christi went up 2 percent and not down 6.6 percent as previously reported by the Nueces County Appraisal District. The error was due to the city's homestead exemptions somehow being counted twice. Now we are sure we will never hear how the accident actually happened or if there was any punishment for such a severe mistake. We do think that something should be done though.

If there is a silver lining in this dark cloud, it is that property values as a whole went up 2 percent and not down 6.6 percent. There are a lot of people out there that think this can't be true, the market is so bad right now. Well we cannot argue with that but what we can say is that the mistake the county made does not effect an individuals property value. What the 2 percent increase does effect is the city's effective tax rate (the rate that would produce last years revenue off last years property at this years appraised value). The effective tax rate will need to actually go down 2 percent instead of up 6.6 percent like the city has stated it was going to do. What does that really mean? It means if our council does not lower the actual tax rate by 2 percent they are actually raising our taxes, without really saying so.

It is quite easy to understand really. Prior to this mistake being found it looked like the city council would have to raise the tax rate by 6.6 percent to produce the exact same tax revenue they did last year. Now in all reality that would not be a tax increase it is just keeping us even steven. So in the same terms, if this city council does not cut the tax rate by 2 percent they will be actually raising the taxes on us. Even if they say "ok we will just keep the tax rate the same", that is still raising it by 2 percent.

If you don't think that this could happen, let us point out that in Tuesday during their meeting when council member Mark Scott was finished with his harsh words about how something like this could even happen. The other council members quickly began talking about how they'd like to spend the extra revenue. People,  there is only extra revenue if they raise our taxes, and not if they cut the effective tax rate by 2 percent like they should.

We wonder what will actually happen? Will the tax rate be cut by 2 percent and all the proposed budget cut items still take place? Or will the city continue to raise the tax rate and give back a little to each city department? Only time will tell.

Tell us what you think should happen?