Here they come.
The ink from Governor Abbott’s pen is hardly dry on Texas’ $10 billion tax cut and local governments are already scheming to steal your share of that tax cut.
For example, Fort Bend ISD just approved a 7-cent property tax rate increase, which district leaders brazenly justify by saying that, well, they’re not going to steal all of it.
“Though the tax rate is increasing, most homeowners will see lower tax bills due to the increase in the homestead exemption for school district property taxes, [Chief Financial Officer Bryan] Guinn said.”
So, you were going to get a $1,000 cut, but they’ll let you keep a few hundred of it. How generous!
This same scenario is going on across Texas right now as cities, counties, and school districts approve budgets and finalize rate changes. But even when they’re not raising the tax rate, they leave the rate the same knowing that home values are going up, which will carry tax bills higher still.
The Texas Legislature has spent several sessions in a row providing tax relief – around $51 billion since 2019. But if the locals can jump in and gobble up the savings, Texans will never feel it.
That’s why many are calling instead for tax reform to ensure the relief actually gets to taxpayers. And while the state can’t instruct local governments on what their tax rates must be, it has plenty of tools in the toolbox that can rein them in.
No one wants to resort to draconian measures that choke off legitimately needed funding. But if local governments see state tax relief as their personal slush fund, the state may have to get much more aggressive.
This commentary is published on Thursdays as part of TPPF’s subscriber-only newsletter The Post. If you would like to subscribe to The Post, click here