Lt. Governor Dan Patrick and Speaker Dade Phelan announced a breakthrough deal Monday on property tax legislation. The Texas Legislature’s recent efforts to provide property tax relief to hard-pressed Texans is a commendable achievement. However, while Governor Abbott called for the “largest property tax cut in Texas history,” we’re obliged to remind him and our readers of a crucial fact: It’s not. In fact, it’s the second-largest.
The real record-holder remains the 2006 property tax relief, valued at $14.2 billion. Adjusted for inflation, today’s legislators would need to deliver at least $20 billion of new property tax relief to claim the title of “largest in history.”
We don’t dispute that this week’s announcement is a significant step – but let’s be accurate about its place in history.
This recent legislation is a significant step forward, providing relief to homeowners and small business owners. For that, lawmakers should be commended. Yet, as Governor Abbott also previously pointed out, the larger goal is not just relief but reform. Our aim should be to put Texas on a pathway to eliminate property taxes related to maintenance and operations (M&O) for our public schools, which are otherwise covered by the state. His focus on this aspect of the tax discussion rightly underlines the necessity of reform as the complement that makes relief stick.
Property tax relief provides temporary respite, but without reform, any relief can be quickly nullified. For instance, since the Legislature passed the 2006 tax cut, property taxes in Texas have ballooned by over 85%. The figures speak for themselves.
Substantial relief today without the backbone of reform will merely be a short-term fix to a long-term issue. Lasting relief will only be realized through measures such as reducing voter approval tax rate benchmarks, subjecting entities to efficiency audits, and setting fiscally responsible limits on local government spending.
The recent package is an admirable stride toward reducing the property tax burden for Texans. However, it’s essential that this progress doesn’t obscure the bigger picture or diminish the sense of urgency for further action. The legislative focus needs to remain firmly on long-term reforms that will provide Texans with stable and predictable property taxes.
The second-largest tax relief in state history is an achievement. But lawmakers should not confuse progress with victory. Texans need more than one-time tax relief; they need a long-term solution and they need it now.
