Once when asked to name the Top 3 Issues lawmakers faced then-Lt. Gov. Bill Hobby responded:
- Money
- Money and
- Money... Everything else is just poetry."
Will the Legislature lower your property taxes? In short the answer is no." The bar is just too high.
The property tax is a $60 billion beast in Texas growing by about $4 billion annually. The state simply doesnt have enough money to make a noticeable dent in your local tax bill.
Besides state lawmakers dont levy a property tax.
Property taxes are the domain of local governments schools cities counties and a myriad of special districts. The only property taxes lawmakers could buy down" using state money are school taxes. Those account for only about half of your tax bill so school tax cuts could easily get lost as other parts of the property tax bill grows as happened in 2006 when the Legislature cut school taxes by one-third. The only way the state could actually cut school taxes enough that one would notice would be to raise other taxes to pay for it. Politically thats pretty much a non-starter.Stan Schlueter former chair of the tax-writing Texas House Ways & Means Committee once said
The problem with tax reform is that no one remembers you for the tax you cut but they sure remember you for the tax you raised."
What about relief" by slowing the rate of increase in our property taxes?
Thats more of a possibility though attempts last session fell apart.
Under current law cities counties and special districts cant raise property taxes by more than 8 without voters being able to launch a petition drive to force an election to roll-back" the increase (at least roll it back to no more than 8 percent). The House and Senate agreed last session that the election should be automatic but failed to compromise on the number that would trigger the election. The Senate was at 6 the House was at 4 and they were unable to find a number in between on which to compromise. Those limits will be back on the table in 2019 with Gov. Greg Abbott now advancing his own plan. Local officials are still opposed though and they can be among the most effective lobbyists at the Capitol. A win for taxpayers will require substantial grassroots support. If they dont hear from those who are concerned about their property taxes then local school city county or other budgets and your taxes that support them are almost certain to increase. Thats a snapshot look at whats on the Legislatures fiscal agenda at least as the 140-day session gets underway. As veteran Capitol observers know however things can change rapidly in the pink building. The Texas Taxpayers and Research Association will be closely monitoring all the activity and advocating for sound and responsible fiscal and tax policy that ensures fairness for all taxpayers. Follow along by following us on social media or learn more about these issues on our website www.ttara.org.- READ Part I of The CRAYMER Series": Replacing Property Taxes with Higher Sales Tax Doesnt Add Up (Misleading policy talk unrealistic dreams wont Eliminate your Property Taxes)
- READ Part II of The CRAYMER Series": The Property Tax is a Sieve; Plugging One Part Just Moves the Leak Elsewhere
- READ Part III of The CRAYMER Series": There is No Permanent Property Tax Rate and Property Taxes Are About to be Set in Communities Across Texas