NAIOP Houston Chapter Announces Important Information on Proposition 1...

	NAIOP Houston Members and Associates, NAIOP Houston stands steadfastly opposed to the City of Houston’s Proposition 1 and we strongly encourage our membership and industry associates to join our efforts to defeat this initiative at the ballot box this November. Prop 1 is a new property tax disguised as an assessment. We oppose Prop 1 for the following reasons: Currently, there is no concrete information or guidelines on how the collected money will be spent.   The details of this multi-BILLION dollar program are still lacking with the election only a few weeks away. This fund has a minimum 20 YEAR LIFE and WILL be extended for an additional 20 year period unless a 2/3 vote by City Council terminates it at renewal.  It is a PERPETUAL back-door tax increase. A $.032 per square foot of impervious cover charge is being contemplated. This would result in a $1,400 annual assessment on 1 acre of improved land or $28,000 over the initial 20 years.  A representative 120,000 square foot industrial building on 6.5 acres would be assessed about $7,000 annually, resulting in the equivalent of  23% INCREASE in the City of Houston portion of an owner’s tax bill. That’s $140,000 over 20years….and that’s only if the assessment rate isn’t increased at some point.  ALL property will be assessed these fees…homesteads, commercial property, paved vacant land, schools, and churches. Therefore, tax exempt organizations will be taxed and local school districts, which are ironically a tax assessor, will be taxed as well. HISD has already requested an exemption from Prop 1 citing the need to fire teachers or raise taxes if the measure passes.  A new fee assessment for our citizens could not come at a worse time. We are struggling to emerge from the Great Recession, growth has stagnated again, and Houston area unemployment is near 9%.... is it really prudent to increase our government funding burden…..again?  We ask you, our members and associates, to quickly get up to speed on this important issue and actively oppose it. Please see (http://stopprop1.com/). NAIOP Board of Directors