The Texas Comptroller's latest Biennial Property Tax Report reveals a $650 million increase in property taxes for 2023, despite previous promises of relief. This development is prompting discussions on reform ahead of the 2025 Legislative Session.
The Texas Legislature had allocated nearly $13 billion over two years to reduce school district maintenance and operations (M&O) property taxes. However, local government spending and loopholes in levy limits hindered these efforts. With an anticipated $20 billion state surplus from taxpayer dollars, the upcoming session offers a chance to overhaul the state's property tax system and provide lasting relief.
"The Legislature’s intent to cut school district property taxes by more than $6 billion in 2023 was undermined by decisions at the local level," according to the report. The current system is criticized for prioritizing government growth over taxpayer relief, with property tax levies growing annually by an average of 5.63% over the past 25 years—outpacing inflation and population growth.
Rising local debt adds further pressure on taxpayers, as revenue increasingly funds debt service rather than essential services. Even with a significant allocation for relief in 2023, these trends persisted.
Despite frustration with legislative efforts falling short, there is optimism about potential reforms during the 2025 session beginning January 14. Lawmakers have resources available to address systemic issues driving tax increases.
"This isn’t just about cutting taxes—it’s about empowering Texans to own their property and reducing the government’s burden on their lives," states a proponent of reform who has advocated for fiscal responsibility for over a decade.
Texans are paying attention and demanding real solutions from lawmakers. By focusing on spending restraint, closing loopholes, and using surplus funds effectively, there is hope that meaningful changes can be achieved in 2025.
Texans for Fiscal Responsibility continues its advocacy work supported by private donors across Texas to promote fiscal responsibility within state governance.
