Texas lawmakers have proposed between $3 billion and $3.5 billion in new property tax relief over the next two years, as outlined in budgets recently filed in the Texas Senate and House. This proposal adds to the $3 billion in relief already provided under Texas law, bringing the total to $6.5 billion.
This amount is lower than the $18 billion relief package passed by the Legislature in 2023. Taxpayer advocates are concerned about the reduction in relief, especially in light of the significant increase in property taxes this year.
“Wait…weren’t Texans promised the largest property tax cut in the history of the world? Instead, property taxes increased in 2023 and 2024! Oops!” economist Vance Ginn wrote on X. “This is because of excessive state and local spending and weak levy limits that #txlege must address this session.”
According to data from the Texas Comptroller’s office, property tax increases by cities, counties, school districts, and special-purpose districts averaged 10% over the last two years. The increases outpaced the Legislature’s relief efforts, resulting in a $6 billion tax hike during that period.
“It’s pretty straightforward,” said Rep. Mitch Little. “The relief is not reaching the taxpayer. We bail one bucket out of the front of the boat by buying down the rate; the appraisal districts and school districts fill up the back of the boat with increased appraised values and bond debt.”
The decline in property tax relief this legislative session coincides with an increase in spending. Texans for Fiscal Responsibility estimates the Legislature has $56 billion in new revenue available this session. However, only $6 billion of that will be designated for tax relief, with the rest allocated to fund new spending.
Jeramy Kitchen, president of Texas Policy Research, suggests that politicians may be shifting focus from property tax relief to more spending.
“I’ve seen it mentioned over the last few weeks that several lawmakers believe that the ongoing ‘buydown’ approach is too big of a commitment to continue to maintain,” Kitchen said. “Rather than provide just ‘a few hundred dollars off a bill,’ some legislators believe it might be better to invest taxpayer funds in infrastructure because ‘they improve property values, will lower water and sewage bills, and ensure Texas’ survival.’”
Rep. Brian Harrison, who has been a vocal advocate for property tax relief, argues that the Legislature is not doing enough to curb rising property taxes.
“Property taxes in Texas are out of control, and the sad fact is that the legislature is not doing a single, serious thing about it,” Harrison wrote on X. “I'm sick of seeing Texans taxed out of their homes!”
Several bills have been introduced aiming to provide long-term property tax relief, including Harrison’s HB 698, which seeks to abolish property taxes and replace them with a new commission. However, similar bills in recent sessions have struggled to gain traction in the legislative process.
