Vance Ginn, chief economist of the Texas Public Policy Foundation, recently explained difficulties homeowners face in the surging Texas housing market.
Ginn said the state should use surplus tax revenue to provide property tax relief.
"Homeownership is the goal of so many who call Texas home,” Ginn said. “Unfortunately, inflation and a red-hot housing market aren’t the only obstacles making this task herculean – local property taxes are out of control. Under the current system, Texans are merely renting their homes and their lands from the government. And when governments don’t get their money, they can take your property and auction it off to the highest bidder."
According to Texans for Fiscal Responsibility, Texas currently has the sixth highest property tax burden in the United States. Since 2002, property taxes in Texas have increased 181%.
The median home price in Texas in June was $349,000, which was the first drop in home prices since December 2020 in the state, according to Texas A&M University. Despite this drop, home prices are significantly higher than they were prior to the COVID-19 pandemic.
Relief may be coming soon. Ginn said Texas has a surplus of tax revenue and recommends the state use the money to lower property taxes., something Gov. Greg Abbott agrees with.
"Texas Comptroller estimates $30 billion account balance by next legislative session,” Abbott wrote in a June 21 tweet. “We must use a substantial portion of this money to cut property taxes in Texas."
A statewide property tax survey showed 71% of registered voters in Texas would be upset if the current legislative session ends without addressing property taxes. Additionally, 82% of registered voters believe addressing property taxes is an important issue.
According to data from Tax-rates.org, the average 2022 property tax bill in Harris County is $3,040.