1.
According to the Consumer Price Index, cost of living has
increased substantially since the average period of 1982-1984
which equals 100 in the current Index. The following data shows
disproportionate growth in medical care cost.
Senior citizens are
severely squeezed financially by the huge growth in medical care
cost. Remember that the all items percentage in the CPI is used to
adjust social security checks and many annuities. **At
the time of this update, we cannot locate comparable government
data through 2006, but you know that prices are still rapidly increasing, especially
medical care and the cost of energy.
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Consumer Price Index Average of 1982-1984 equals 100 |
| Year |
Base Year |
2004** |
| All Items |
100% |
188.9%** |
| Medical Care Services |
100% |
321.3%** |
| Hospital & Related Services |
100% |
417.9%** |
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| 2. School tax is
"frozen" in the year a senior reaches 65 years of age provided
the senior applies for this action. As long as the senior lives
at the homestead without making improvements to the property,
school districts cannot impose a greater amount of school tax in
later years than was imposed in the year the taxpayer reached
65. Texas over-65 seniors need this same treatment for county, city, and hospital district taxes imposed on their homestead. |
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3. County tax appraisal districts are required to
reappraise homesteads at least every three years. As a result
of these reappraisals, the appraised value of your homestead likely
increases without you having done anything to improve your property. While many taxing units have been able to keep tax rates
low due to the rapid increases in appraised property values, all
taxing units periodically increase their tax rates.
Ever increasing appraised homestead values combined with tax rate increases make it very difficult for over-65 seniors to pay increasing homestead taxes.
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| 4. Sales taxes on
consumption items hit over-65 seniors hard. Most taxing entities
are at or near the maximum tax rates. Increasing sales taxes and homestead taxes have forced some seniors to choose between medicine and other necessary items.
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| 5. By the time a
taxpayer reaches 65 years of age, the taxpayer has supported an
expanding infrastructure to support the city, county, and state
government functions for many years. At a time of significantly reduced income for over-65 seniors, it is unfair to expect the over-65 senior homesteader to pay increasing amounts of homestead tax.
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