Texas Property Taxes

So we just approved some “property tax relief” in Texas.The one raising the homestead exemption from 25 to 40k is the most annoying to me. One school district taxes at a rate of 1.25 per $100. This additional 15k exemption , will “cut” my taxes by $187.50 per year
on school taxes. But my overall tax bill goes up
significantly more due to much bigger increase in appraisal value.

So it boils down to campaign slogans of “cutting taxes” and increasing the exemption by whopping 60%. True
statements, but in bigger context false. The joke is on citizens of Texas.

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Our state constitution prohibits any income taxes, so this is what our legislators have to work with. We are one of a handful of states growing in school-age population, plus more cars on the road, library users, those drawn by less-expensive housing, and on and on.

Corporations get tax breaks (like Tesla in Austin, for a recent example), but the new plant requires more roads, electricity, water, sewage, law enforcement, and more. FWIW, I’m not against luring businesses with favorable tax treatment, but I’m against bidding wars in a race to the bottom.

Until we find a sweet spot, residential real estate (and sales taxes) will pull much of the tax revenue load.

Here is the deal for me. When the homestead
exemption was established at $25k , what percent of Texans saw a significant savings with this? I’m guessing it was a big deal back in the day. But in todays urban metro areas, a $40k exemption is very very little.

As for tax breaks for attracting business , I’m generally
for it. But I would prefer personal property tax be replaced or greatly reduced by some other tax , that I at least have an option of how I choose to interact with it.

NRG, your choices are rather constrained. Property taxes, sales taxes, or maybe you could put tariffs on goods and services from other states. Who is going to pay these taxes so we can hire police, fire, teachers, and utility workers? Not Tesla, not Amazon, because they bring jobs which brings people which creates a bigger need for more of the above that has to be paid for by taxes.

sales taxes is my preference with possibly looking into
some type of limited income tax. Gambling is another
source, but admittedly rather small. Same for legalization of some drugs

Sales taxes in Texas are already high. And there is a limited state income tax.

And sprawl is expensive. And unless you move waaaaaaaay out, it catches up with you.

People said “It’s too crowded around here.”
1950: Let’s move to few miles west.
1960: Let’s move to Sharpstown.
1970: Let’s move to Sugar Land.
1980: Let’s move to Richmond.
1990: Let’s move to Tomball.
2000: Let’s move to The Woodlands.
2020: Let’s move to Magnolia, Conroe, Montgomery, Sealy, Rosenberg.
2030: Texas is too crowded. Let’s move to ?

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Agree sales tax are high…but I can control my consumption. Not so much with property taxes.

Institute everify in the state on the underground economy is another option

Yes, and we used to have $75,000 homes and the
homestead exemption was a big deal. At the very least
index the homestead exemption to keep pace with
rising values. 40k is a joke.

You can control how expensive of a house you buy. You can’t control anything with an income tax.

Agree with this. But they rarely index things like that to inflation. That includes taxes (e.g. motor fuel excise taxes).

I don’t buy a house every day or even every year.
I sit in my house , and it’s taxes increase. Sure it’s
nice to have increasing appraisals and net worth. But I’d say it’s mostly all unrealized for most.

Agree, it sucks. Many believe Texas is a tax haven and that’s true, for the rich and businesses. It’s really not that different for the middle class.

I’ve given you a hint as to the solution - tax business property enough so as to not burden homeowners. Income taxes are prohibited in the state constitution since the 2019 election (it was Proposition 4), so that can’t happen without amending the constitution again.

Yeah, prices will go up (maybe) and some businesses might leave (probably not many), but unless businesses are taxed to make up the shortfalls, expect services to never catch up to our growth, and to deteriorate in current service areas.

Truth. Though I’d love to tax cannabis and gambling by making them legal, they wouldn’t provide tax revenue sufficient to make up shortfalls.

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Eliminating waste and fraud, while laudable goals, won’t put a dent in shortfalls, either. And it’s not as if Texas hands out gold-plated benefits and freebies.

Texas is 44th in school funding per child as of 2021. One out of 5 students won’t graduate high school.

Texas spends 43.1% of all appropriations from state, federal and other sources on health care. That’s from the comptrollers office. Oh, yeah, we have the highest hospital bills in the country and no Medicaid expansion, so we are still in the bottom 10% among the states when costs, access, and outcomes are measured. Yes, those of us with health care access love the TMC. Totally agree.

Where will the taxes come from?

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They need to make gambling legal then use the money off it to help state funding. They could also legalize weed and do the same.

Since 2005 , I have used o’connor &associates in Houston to help fight my taxes each yr and it works. The billing is if they save you nothing, you don’t owe and if they save you $300 in tax then you just pay them $150. Lately it has been going up but not nearly like it would be. Normally it would be a runaway freight train. You sign up and put any defects or issues with your house etc. Even if your house has no issues, they still keep the taxes down bc they mass appeal the appraisal district each yr with thousands then the appraisal district gets overwhelmed and gives in.

Website above

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Top 25, where is the money coming from to replace the tax revenues that lowering your evaluation will eliminate? Texas cannot grow its way out of this. Pot taxes and gambling taxes won’t do it. Only 3 ways exist: impose an income tax (first amending the constitution), increase sales taxes by several percent and put on a sales tax for services (like haircuts, plumber, electrician) or pulling back tax breaks for businesses (of which exemption from sales tax is one break). That’s it. Pick your poison.

I’d be for sales tax increases and a limited income tax. They could just exempt a portion of income for the income tax. I don’t no where they get the money to make up for what o’conner does but I have to try each yr. I don’t think that many people fight their taxes on their own bc it’s difficult and time consuming and not a lot are using the tax forms like o’conner.

Louisiana has both a prop and income tax which works. You can have a big house in Metairie ,la where my parents live and pay $1500 or so for a $500000 house. Now in the city of New Orleans, they tax at a diff rate and it’s high in the city of New Orleans.

Texans won’t ever vote for an income tax, which is why voters passed Prop 4 amending the constitution in 2019.

Don’t tax you, don’t tax me, tax that fellow behind the tree. :rofl:

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