The chief economist of the Texas Public Policy Foundation (TPPF) recently testified before the Senate Finance Committee on lowering property taxes in Texas.
In his testimony, Vance Ginn noted that over the last 20 years, property taxes have increased 81% faster than the preferred rate of growth, which is measured as population plus inflation.
“Texans are facing a crisis when it comes to paying for their skyrocketing property taxes, inflated bills and saving for a rainy day. In fact, many Texans are living with the fear that exorbitant taxes could take their home away or keep them from buying their first home,” Ginn said. “The Foundation has developed a balanced, practical solution to lower property taxes by eliminating the maintenance and operations (M&O) property taxes while also funding the needs for critical services.”
To mitigate the exorbitant property tax increases, Ginn and TPPF propose eliminating local M&O property taxes gradually until 2033, when they would be completely eliminated. State surplus funding buy down the local M&O rates.
Ginn assured the committee that a recession would not reduce the amount of school funding, but instead might delay the buydown during that period of time.
His comments included the fact that this would not only benefit the wealthy, but would reduce everyone’s property tax burdens by up to 80%.
In February, The Balance ranked Texas in the 10 states with the highest property tax rates in the United States with a median payment of $4,065 per year.
