The Facts
- Repealing property taxes and replacing the revenues with a reformed sales tax would provide meaningful tax relief, generate added wealth, spur job creation, and protect the rights of property owners.
- In the first year after tax reform is implemented, personal income in Texas would increase $3.6 billion to $3.68 billion.
- After a five-year period, personal income would increase by an estimated $22.85 billion to $63 billion-a rate of approximately 1.8% to 4.7% higher than under the current tax structure.
- Over a five-year period, the Foundation’s property tax reform proposal would help create between 124,900 to 337,400 net new jobs as compared to if no tax reform were implemented.
Recommendations
- Abolish property taxes and replace them with a reformed sales tax that includes an adjusted tax rate and base.
- Ideally, the reformed sales tax would closely resemble the option with an 11% sales tax rate, an adjusted base that includes all items taxed in at least one other state, including the sale of property.
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