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<br />Caspary said the petition .ve was necessary because the . refu~ed to pass a freeze <br />without a referendum. <br /> <br />Mayor Todd Pearson said he expected the city to follow the county's lead, but now he <br />does not support the tax freeze. <br /> <br />No one is sure what the implications are yet, Pearson said, and it appears to have the <br />most benefits for some of the more affluent members of the community. <br /> <br />"The people hurt will be the people under 65," he said. "The expectation that the council <br />would pass this without public discussion is really not proper because when that freeze <br />occurs it is automatically a tax increase for people under 65 or it is a reduction in the <br />services provided by city government." <br /> <br />Caspary disagrees. <br /> <br />"It would help the economy, because more people would come into the community," he <br />said. "The deficit will be picked up by new people moving in." <br /> <br />May scare young away <br /> <br />But Pearson said higher taxes for some residents will do just the opposite by keeping <br />young middle-class families out of Rockport. <br /> <br />"It is not in the long-term best interest of our community, " he said. "The cost of <br />government does not change when we institute the freeze. It shifts the burden to <br />younger taxpayers. " <br /> <br />Another sticking point for Pearson is the potential damage the measure could do if the <br />state passes measures to restrict rising tax rates. <br /> <br />"We do not know what the Legislature is going to do," Pearson said. "If we couple a <br />freeze on over 65 with a cap on appraisals and a limitation on tax increases, we have <br />hamstrung city government dramatically. " <br /> <br />Once the measure is put in place by a taxing entity it is irrevocable, he said. Which <br />leaves the city with no new funding streams. <br /> <br />On average, statewide, 60 percent of ad valorem taxes come from commercial property <br />and 40 percent from residential property. <br /> <br />Bulk of taxes residential <br /> <br />"In Rockport it is diametrically opposite," Pearson said. "This year, 73 percent of the <br />taxes are on houses. Our whole tax base is residential." <br /> <br />But Caspary said that older people on fixed incomes deserve a break. <br /> <br />2 <br />