Texas Senate advances property tax bill as debate heats up
- Gov. Greg Abbott called a special session amid Texas' property tax impasse
- Abbott wants to first reduce and then eliminate property taxes
- The Senate advanced its own plan Tuesday
(NewsNation) — Texas Governor Greg Abbott wants to reduce property taxes and eventually eliminate them altogether, but some critics worry his plan could bankrupt schools and other public services years down the line.
The state senate, however, advanced its own proposal Tuesday.
Abbott’s dream is to get rid of property taxes completely, but his immediate focus is on lowering them.
It’s been a tense fight in the state legislature, so much so that Abbott called a special session, demanding lawmakers hammer out a deal.
The state House has passed Abbott’s plan, which would send $17 billion of the state’s $33 billion budget surplus to schools across the state, thereby reducing the tax rate. It would save a homeowner with a $300,000 home about $1,300 over the next two years.
According to the Texas Tribune, the surplus comes from the state’s strong energy sector as well as strong consumer spending, thanks to COVID relief packages, increasing sales tax revenue and higher prices.
The state senate passed its own plan.
The Senate bill would provide targeted tax relief to homeowners and help cut school district tax rates by using state dollars to help with funding. It also places more strict revenue caps on school districts, the newspaper reported.
Republican Texas Sen. Paul Bettencourt took to Twitter after the vote, calling the bill’s passage in the Senate a “Win-Win-Win” for Texas taxpayers.
Both sides will eventually have to compromise on a deal.
“Zero is what we want you to pay for your property taxes in the state of Texas,” Gov. Greg Abbott said. “We have hundreds of thousands more people paying into our sales tax revenue every single year.”
Texas has the sixth-highest property tax rate in the country, according to the think tank Tax Foundation — a self-described independent tax policy nonprofit. The organization North Texas Property Tax Services says that’s due to no state income tax, varying tax rates between counties, and higher home prices as more people move to the state.
Texas Lt. Gov. Dan Patrick said eliminating property taxes is a “fantasy.” He’s challenged the governor to a “Lincoln-Douglas-style debate” to battle out whose tax plan is better.
The lieutenant governor spoke with a local talk radio show about his concerns regarding the long-term sustainability of Abbott’s plan.
“You have a future session and the economy is down, sales tax, which is most of our revenue at the state, and then you have to pull it back because you don’t have enough money to pay it anymore,” Patrick said.
Some public school teachers and administrators are reportedly raising concerns about school funding in the long run, namely building maintenance and teacher salaries.
NewsNation reached out to several school districts and organizations but did not hear back.