AUSTIN— Today, the full Texas Senate approved the passage of Senate Bill 2, the Property Tax Reform & Relief Act of 2019. Among other things, the bill lowers the rollback tax rate, now called the “no-new-revenue tax rate,” from 8 percent to 3.5 percent for cities, counties, and special districts. It also imposes a rollback rate of 2.5 percent for school districts. Under current law, the rollback rate is the threshold above which taxpayers can challenge an increase.
“This is a historic reform of our property tax system,” said Texas Public Policy Foundation’s Executive Director Kevin Roberts. “For too long, Texans have suffered from overspending by their local governments, which leads directly to higher tax rates; that is not the road to continued prosperity. Without this reform, the current regime threatens the Texas model of prosperity and opportunity.”
“Today’s passage of property tax reform by the Texas Senate is an opportunity to slow the growth of skyrocketing property taxes that have forced too many Texans out of their homes and businesses,” said Vance Ginn. “By including the 2.5 percent rollback rate for school districts, which is the largest portion of a Texan’s property tax bill, and accomplishing spending restraint this session, Texans can see real cuts to their property tax bills.”
“It’s well past time to protect Texas taxpayers by lowering the rollback tax rate. The rate was last adjusted four decades ago, when Reagan was President and Raiders of the Lost Ark was in theaters. Those days are long gone as is the high inflationary period that caused it to be set at 8 percent in the first place,” said Think Local Liberty’s Ellen Troxclair. “Reducing the rollback rate to 3.5 percent for cities and counties, and 2.5 percent for school districts is long overdue.”