Property Tax Reform
OVERHAUL THE PROPERTY TAX SYSTEM
ELIMINATE SCHOOL PROPERTY TAXES FOR HOMEOWNERS- Despite record property tax relief provided by the state, local government tax increases have wiped out billions in savings for homeowners. More must be done to rein in out-of-control property taxes.
- School district property taxes are the largest portion of Texas homeowners' tax bills, and voters deserve the right to decide whether to abolish school district taxes.
- Under Governor Abbott's plan, voters will have the right to decide - through a constitutional amendment - to eliminate school district property taxes on homeowners.
- It is not your homestead's responsibility to pay for public schools. That's the state's responsibility, and that's exactly what Governor Abbott's plan will do.
- Removing school district taxes from your property tax bill will cut the average homestead's property taxes by half.
- The current appraisal process is unnecessarily burdensome, and Texans should not be troubled with appraisal protests year after year. It strains families and businesses and allows taxing entities to take more of your money while blaming rising values.
- Governor Abbott's plan will require that all properties be appraised only once every five years. That means fewer surprises, less red tape, and more peace of mind for Texas families and businesses.
- Currently, Texas law limits appraisal value growth of homesteads to 10% per year. While meant to provide relief to Texas homeowners, rising values and tax increases are still pricing people out of their homes, especially those on fixed incomes.
- Governor Abbott's plan will lower the homestead appraisal cap from 10% to 3%, providing homeowners with the help they need.
- Further, his plan will expand that cap to all properties, which will help renters and businesses - a major step to protect property owners, deliver more relief and predictability, and keep housing affordable.
- The State of Texas does not levy any property tax. Local governments control your property taxes and they can raise them in multiple ways. Unfortunately, there are limited options for taxpayers to lower their tax bills.
- Under Governor Abbott's plan, if 15% of registered voters in a local area sign a petition, they can force a rollback election to lower rates, reducing taxes for all property owners and constraining the growth and spending of local governments.
CONTROL SPENDING AND TAX RATES
REQUIRE COMMON SENSE LOCAL SPENDING LIMITS- Texas families must live within their means, and local governments must too. The State of Texas has five spending limits, but there are no standardized limits for cities, counties, and other local government entities.
- Limiting local government spending to population + inflation or 3.5% (the lesser of the two) would ensure fiscally responsible governance.
- Other safeguards like the state's debt limit and prohibition on deficit spending are common sense policies that should apply to all levels of government.
- Governor Abbott's plan will protect taxpayer dollars and institute fiscally responsible policies that will keep Texas prosperous.
- Right now, it is far too easy for local governments to impose higher taxes on Texans without their approval. It must be harder, not easier, for local governments to take your hard-earned money.
- In fact, certain laws regarding property taxes and spending require a two-thirds and, in some cases, a four-fifths vote.
- Governor Abbott's plan will require a two-thirds voter approval on all local property tax increases before they can take effect.
- This will empower voters and protect taxpayers, putting everyday Texans in control of proposed tax hikes.
