On Sunday, Governor Greg Abbott delivered the State of the State address, covering a wide range of critical issues, like border security, school choice, and cybersecurity. However, for many tax-weary Texans, his remarks on the property tax were perhaps the most welcome.

As he has done on prior occasions, Governor Abbott urged the Legislature to go big on tax cuts, saying: “I want at least $10 billion in new property tax relief” [emphasis mine]. Encouragingly, that double-digit amount is substantially more than what has been proposed thus far by the Texas House ($6.5 billion) and the Texas Senate ($6.5 billion). It is also nearly half of the state’s estimated general revenue-related surplus ($23.8 billion), which continues to be a source of tremendous opportunity for the state to gradually eliminate school district property taxes.

While the Governor’s call for massive tax relief was well-received, it was his push for tax reform that was especially noteworthy. Those comments were, of course, colored by the events of the last 2 years which saw local governments erode the tax savings provided by state leadership through aggressive rate hikes, massive bond elections, and spending splurges.

As the Governor explained:

“Last session, we slashed your property taxes. But for many Texans, those cuts were wiped out by local taxing authorities that hiked your property taxes even more. That must end this session.

I want at least $10 billion in new property tax relief. But that will only work if local authorities cannot use loopholes to jack up your property taxes like Harris County did. They increased property taxes more than 10% last year.

Loopholes that increase your property taxes must be banned. No taxing entity should be able to raise your property taxes without a two-thirds approval by voters.” [emphasis mine]

The petition for stronger taxpayer protections is spot on, especially considering the lack of a local spending limit. These changes are crucial to not only preserving the Legislature’s intent, but also reasserting fiscal discipline into an otherwise loose and reckless environment.

All of which raises the question: What policy prescriptions could help close loopholes that are being abused and move the State in a better direction? Well, we have a few ideas…or 35, to be exact.

Of course, these three-dozen suggestions are just a starting point. There are, no doubt, countless ways to improve the current system; but the most important thing is for the Legislature to recognize the need for bold constraints and then to actualize them.

Because if the last 2 years have taught us anything, it’s that tax relief is fleeting when it isn’t accompanied by meaningful tax reform.