Riding the wave of an enormous $32.7 billion state budget surplus, Texas Governor Greg Abbott boldly declared that he would deliver the "largest property tax cut in Texas history." Lt. Governor Dan Patrick and Speaker Dade Phelan also claimed their chambers will deliver the “largest” property tax relief in state “history.” A closer examination makes clear these claims may not stand up to the scrutiny of historical context.
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.
Additionally, both packages count $5.3 billion of property tax relief previously passed by the legislature in 2019. That leaves each with only $12 and $11.2 billion of new relief respectively. In either case, these proposals fall short of the $20 billion benchmark required to claim the title of "largest in history."
Even then, the promised relief is only meaningful if accompanied by real property tax reforms.
Past relief measures have often been erased as tax levies continue to rise. According to the Texas Comptroller, since the Legislature passed the largest tax cut in Texas history in 2006, property taxes in Texas have increased by more than 85%.
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.
