Tax cut erosion is a major concern around the state. Since 2019, the Texas Legislature has committed substantial resources toward reducing property tax bills through twin strategies: compressing school district maintenance and operations (M&O) tax rates1 and increasing the residence homestead exemption. However, the Legislature’s tax relief efforts have largely been frustrated by the excesses of local government, which commonly take the form of aggressive rate hikes, frequent voter-approval tax rate elections (VATREs), large and costly bond propositions, and the abuse of certificates of obligation (COs).
Higher Taxes on the Horizon: City of Early
Many city, county, and school district officials are right now deciding where to set tax rates for the next fiscal year. In some cases, these local decisions will push property taxes higher, creating new challenges for families struggling with affordability. Given the very real prospect of tax hikes on the horizon, now is the time for Texans to learn what their local elected officials are doing and get involved in the decision-making process—while there’s still time to push for taxpayer-friendly alternatives. To better illustrate what may be around...