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If history is any guide, Texans will overwhelmingly approve a state constitutional amendment on Nov. 3 aimed at providing them some relief from rising property taxes.
But the expected savings on homeowners’ property tax bills, estimated at $126 on average, comes with a trade off: a permanent increase in state spending. Texas lawmakers will budget $600 million annually to cover the loss of revenue to school districts, which rely heavily on property taxes. That’s on top of about $8.4 billion already in the state budget each year to make up for three previous property tax relief measures implemented since 1997, according to the Legislative Budget Board.
All together, the state will be spending about $9 billion a year to offset property tax relief measures, or more than eight percent of the budget Gov. Greg Abbott signed in June.
“In many regards, we are creating a double taxation,” said state House Ways and Means Chairman Dennis Bonnen, R-Angleton. “Most Texans aren’t going to see a reduction in their property tax at home and they are now and forever going to pay $600 million a year for this homestead exemption to the state.”
Bonnen was openly critical of property tax relief efforts throughout this year’s legislative session. Faced with strong interest among lawmakers to address fast-rising property tax bills, he ultimately backed a pared-down version of the Senate's proposal as part of a larger tax cut deal.
