While the House and Senate versions of property tax relief are substantial, they fall short of achieving the 'historic' status claimed by state leaders.
In 2006, Texas passed the largest property tax relief in its history, valued at $14.2 billion, according to the Legislative Budget Board. To surpass that today, The legislature and Governor would need to deliver at least $20 billion of new property tax relief (adjusting the 2006 figure for inflation). The current proposals from the House and Senate are valued at $17.3 and $16.5 billion respectively.
Even then, the promised relief is only meaningful if accompanied by real property tax reforms.
This alarming statistic underscores the necessity for local property tax reforms such as reducing the voter approval tax rate benchmark for all taxing entities, subjecting entities to an efficiency audit before requesting voter approval of a new tax rate, and imposing fiscally responsible limits on local government spending.
Texans should remain skeptical of the claims made by politicians, especially when they appear to overstate tax relief figures by including previously passed relief measures.
For politicians to get the credit they are hoping to receive, they need to deliver on what they promised to taxpayers. Any property tax relief must surpass historical benchmarks, and also include local tax reforms to make the relief permanent.
As it stands, Gov. Abbott, Lt. Governor Patrick, and Speaker Phelan risk underwhelming Texans by overpromising and underdelivering. There is still time to deliver the largest cut in Texas history, but what’s being offered won't count.