Texas Gov. Greg Abbott is taking another swing at property tax reform, pitching a six-point plan that would slash appraisal growth, restrict local spending and give voters far greater control over tax increases.
Abbott’s proposal, announced Sunday during his reelection campaign kickoff in Houston, marks one of his most aggressive attempts yet to overhaul how Texas funds local services — a perennial issue in a state with no income tax and fast-rising property values, the Dallas Morning News reported.
Much of the plan would require a constitutional amendment, with Abbott vowing to make property tax relief a top legislative priority.
According to Abbott, the Legislature’s record $51 billion allocation for tax relief this year was blunted by local governments raising their own levies. His plan seeks to counter that by tying local spending growth to 3.5 percent or population plus inflation, whichever is lower, and by extending the state’s debt and deficit limits to counties, cities and school districts.
The proposal would also require a two-thirds voter majority for any new local property tax hikes, effectively giving taxpayers veto power over local budgets. Residents could also petition to roll back existing taxes if 15 percent of local voters sign on — a mechanism Abbott says would help check “runaway” local government spending.
To tackle the state’s appraisal battles, the plan would cap homestead valuation growth at 3 percent, down from 10 percent, and extend the limit to rental and commercial properties. Appraisals would occur only once every five years, eliminating what Abbott called “surprise” annual increases that fuel taxpayer frustration.
Perhaps the most sweeping measure would allow voters to decide whether to eliminate school district property taxes altogether. Those levies make up the largest share of Texans’ property tax bills, but Abbott’s outline offers no detail on how the state would fund schools if that revenue vanished — a likely flashpoint should lawmakers consider the plan.
— Eric Weilbacher
Read more
Texas voters lock in major property tax cuts for homeowners and businesses
Gov Abbott signs bill closing Texas’ “traveling” tax loophole
Bexar County voters approve $503M for Spurs, rodeo arenas
Texas is asking for lawsuits in crackdown on housing tax loophole
