The way we assess and impose property taxes is not just unsustainable, it is unethical. Under the status quo, Texans are forced to rent their homes from the government and are denied the opportunity to ever truly own their property. This cuts against Texans who value property rights and limited government, and it begs for meaningful reform. Most Texans want action now, too. In fact, more than 70% of Texans say property taxes are a “major burden for them and their family” and crave change.
The hunger for a new direction goes beyond property rights. Local property taxes have been growing faster than the average taxpayer’s ability to pay for them, which places an undue burden on Texans and stifles the growth of the economy. Elevated and rising property taxes limit Texans’ opportunities to save, invest, and leave a legacy for future generations. They also pose an obstacle to prospective homebuyers on the front end and threaten to tax existing homeowners out of their properties on the back end. These problems are, of course, rooted in excessive local government spending, which continues to skyrocket largely uninhibited, keeping Texans from reaching their full potential.
It is time for bold action.
• Local property taxes in Texas have been growing faster than the average taxpayer’s ability to pay for them, which places an undue burden on Texans and stifles the state’s economy.
• Elevated and rising property taxes limit Texans’ opportunities to save, invest, and leave a legacy for future generations. They also too often stop Texans from purchasing a house or even force many out of their home.
• Based on the inefficiency, cost, and inequities of Texas’s property tax system, we recommend a bold approach to substantially reduce and remove nearly half of this burden.
• Following the recommendations outlined here, Texas can unleash greater economic prosperity