Greg Abbott, the governor of Texas, has stated that he and his administration want to completely do away with homeowner property taxes in the state. According to the governor of Texas, it is feasible due to the additional tax money brought in by the state’s expanding economy.
Along with House Speaker Dade Phelan (R) and Lt. Governor Dan Patrick (R-TX), Abbott made this commitment, stating that lawmakers should make lowering and getting rid of property taxes in the state a top priority.
The governor’s office stated in a news release that “his property tax plan would direct $17.6 billion of Texas’ historic budget surplus—amounts that have already been appropriated by the legislature—to cut property tax rates, putting money back into the pockets of hardworking Texans.”
Abbott asked for a special legislative session on May 29th to discuss a number of different goals, including the reduction of property taxes. The House and Senate passed separate versions of the measure following this session, and the bill has been at a stalemate ever since.
The governor of Texas was very clear that his goal was to completely remove property taxes rather than just reduce them. Although some have argued that his plan is unworkable, Abbott has stayed steadfast in his stance, asserting that Texas has the nation’s fastest-growing economy. Today, our economy generates more than $2.3 trillion annually. In an economy that generates $2.3 trillion, we’re attempting to spend $17 billion.
The governor of Texas was very clear that his goal was to completely remove property taxes rather than just reduce them. Although some have argued that his plan is unworkable, Abbott has stayed steadfast in his stance, asserting that Texas has the nation’s fastest-growing economy. Today, our economy generates more than $2.3 trillion annually. An economy that generates $2.3 trillion annually is being used to spend $17 billion. That is less than one-tenth of one percent, or.007% of our entire GDP. We are capable of doing it.
“How should we approach it? We must go big,” the incumbent third-term governor said. “We must dream big. You’ve got to dream it and then you’ve got to do it.”
“In Texas, we don’t do things half-heartedly, We go big, and we make sure we accomplish our big vision. Texans want to own their property, not rent it from the government. Under my property tax plan, we will put Texans on the pathway to eliminate property taxes.”
“The way to do this is through compression,” Abbott continued, “which means reducing the amount of property taxes paid to school districts.” According to Abbott, this will initially reduce property taxes by 29%. He further explained that this strategy “will put us on a pathway where in the ensuing sessions we will be able to get to zero for your property tax rate, for your school district property taxes.”
The Lone Star governor clarified that other taxes make up a larger portion of overall tax revenue, citing sales tax in particular as Texas’ “largest source of revenue.” Abbott also emphasized the cyclical nature of the tax cut, pointing out that when homeowners pay less in property taxes, they have more money to spend in the economy, which results in the state receiving more sales tax.
Similar to when a family purchases a home, Abbott said he doesn’t know if there is a certain way to definitely carry out the plan, but that it is a risk that the state should accept. “If you purchase a home, you might think, ‘Well, it’s a stretch for us, we may not have the income,'”
In contrast to a family purchasing a home, Abbott said he is unsure if there is a specific mechanism to ensure that the plan will succeed but that the state should assume the risk anyhow. “If you buy a house, you might think, ‘Well, it’s a stretch for us, we may not have the income, what if we get sick or lose our job?'” When someone purchases a home, there are unknowns. However, they agree to something. This home will be ours to purchase. We’re going to come up with the cash.
Abbott has already stated that he will call another session if necessary to complete the legislation, but the first special legislative session will only continue for 30 days.
Texas appears determined to establish itself as one of the best states in the Union by doing everything in its power to protect families. While other states find methods to advance, California seems to be stuck in a downward cycle.
