|
On the heels of what proponents have called “historic” property tax relief, some Texas lawmakers are questioning whether the state can afford to continue increasing the tax exemptions passed in 2023 and 2025.
The big picture: Texas homeowners pay property taxes to various local entities, although lawmakers can limit how much entities increase taxes each year and provide state funding to expand tax exemptions.
Texas is spending $51 billion on property tax relief in fiscal years 2026 and 2027 alone and may be required to spend more to maintain existing tax exemptions in future bienniums, lawmakers said.
What they're saying: "We're kind of maxed out at what we can do for property tax reform, from a budget perspective," said Sen. Charles Perry, R-Lubbock, during a Nov. 20 event.
"$51 billion ongoing, it's a huge amount to continue to support. To think about doing anything more seems very fiscally irresponsible," Rep. Donna Howard, D-Austin, said.
The other side: Rep. Ellen Troxclair, R-Lakeway, said creating limits on local government spending would be critical to keeping Texas affordable.
|