AUSTIN – Today, the Texas Public Policy Foundation praised a new proposal by Governor Greg Abbott to cap the growth of property tax revenue. The plan requires voter approval of revenues beyond a cap of 2.5 percent growth in each taxing jurisdiction.
“The Governor’s proposal to cap revenue growth from property taxes is a critical step in protecting taxpayers, homeowners, and small businesses,” said TPPF executive vice president Dr. Kevin Roberts. “Texans are getting taxed off their own property, making it impossible for some people to stay in their homes or grow their businesses. The Governor’s plan will give citizens more control over the exploding cost of owning and operating property in the state.”
According to reports, Texas has the sixth highest property tax burden in the country and property tax revenues have increased by nearly 200 percent over the last two decades.
“It’s a strong and clear signal to local governments that they can’t keep going back to the well of property taxes in lieu of crafting responsible, prudent budgets,” said TPPF’s vice president of public affairs Stephanie Matthews, who also heads up the foundation’s Center for Education Freedom. “We need more education innovation in Texas, along with school finance reform. This proposal will hopefully encourage the state legislature to deal directly with promoting new educational options and freedom, as well as develop a more equitable and efficient funding system that improves educational outcomes and puts parents in charge.”
“Though Texas continues to rank among the low-tax states, skyrocketing increases in revenue from property taxes is dragging down our ability to grow in some areas,” said Dr. Vance Ginn, TPPF’s director of the Center for Economic Prosperity. “The system is ripe for reform toward a structure that generates revenue through expanded, broad-based economic activity rather than the antiquated property tax. The Governor’s plan to rein in tax increases and spending gets us closer to those much-needed reforms.”
For more information, please contact Alicia Pierce at [email protected] or 512-472-2700.
The Texas Public Policy Foundation is a non-profit free-market research institute based in Austin. The Texas Public Policy Foundation aims to advance a societal framework that effectively fosters human flourishing based upon cooperation and mutually beneficial exchange of ideas and speech.