Texas Gov. Greg Abbott delivered his third inaugural address on Tuesday, highlighting Texas’ economic success and calling for record-breaking property tax cuts.
“We now have the largest budget surplus in the history of our state. But make no mistake, that money does not belong to the government. It belongs to the taxpayers. We will use that budget surplus to provide the largest property tax cut in the Texas history,” Abbott said during his inaugural speech, according to a press release.
Abbott said Texas’ $2 trillion economy is “America’s undisputed economic leader.” Referring to the number of Fortune 500 companies based in Texas, Abbott went on to herald it as the “headquarters of headquarters” as the state “lead[s] the nation in job growth.”
Earlier this year, Texas Comptroller Glenn Hegar released his office’s updated revenue estimate reporting that Texas is expected to have a budget surplus of $32.7 billion as legislators make plans for the 2024-25 biennial budget.
Abbott’s proclamation should not come as a surprise. The Texan previously reported that the governor has been calling for the “largest property tax cut ever” at least since his time campaigning in September 2022.
Previously, the largest property tax cut in Texas history was $14.2 billion in 2009, according to James Quintero of the Texas Public Policy Foundation.
Therefore, to make good on Abbott’s promise, the legislature will need to deliver a property tax cut of about $20 billion when adjusted for inflation from 2009 dollars.
According to Tax-Rates.org, Texas has the third highest median property tax rates in the nation, about double that of Florida and 2.5 times that of California.