Overview
- Gov. Greg Abbott unveiled a six-part proposal that would limit local spending growth to 3.5% or the inflation rate, require two-thirds voter approval for property tax hikes, and let 15% of registered voters trigger rollback elections.
- The plan would lower the cap on annual taxable value growth to 3% from 10%, extend the cap to all properties, and move property appraisals from annual reviews to five-year cycles.
- Abbott said he will seek a constitutional amendment to abolish school district property taxes, which supply most public school funding and the largest share of many homeowners’ bills.
- The Texas comptroller’s office told senators that replacing the $81 billion collected in property taxes in 2023 would imply a roughly 22% sales tax rate, raising concerns about regressivity and revenue volatility.
- Policy analysts note that prior efforts to tighten local tax limits stalled in the Legislature, even as the current budget earmarks about $51 billion for property tax relief and Abbott pivots from his newly enacted school-choice program.