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Abbott Centers Reelection Bid on Sweeping Texas Property‑Tax Overhaul

Passage depends on legislative supermajorities plus voter consent.

Overview

  • On the campaign trail this week, including a stop in Temple, Gov. Greg Abbott detailed a multi-part plan he says targets housing affordability by restraining local taxes.
  • The proposal would require two‑thirds voter approval for any local property‑tax increase and let 15% of registered voters force rollback elections to lower rates.
  • Appraisal changes include capping taxable value growth at 3% a year, moving to five‑year appraisal cycles, and extending caps beyond homesteads.
  • Abbott wants voters to consider a constitutional amendment to eliminate the school‑district portion of homeowners’ property taxes, paired with tighter statutory limits on local spending growth.
  • Fiscal analysts warn of a large funding gap for schools, citing a comptroller estimate that replacing $81 billion collected in 2023 could imply roughly a 22% sales‑tax rate, with education advocates pegging at least $35 billion annually to replace school M&O taxes.