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Property Tax Task Force |  |
In May of 2006, the 79th Third Called Session appropriated $2.1 billion to Maintenance & Operations (M&O) property tax rate relief for the 2007 tax year. The 80th Legislature funded future rate cuts. Despite this historic M&O rate relief, property tax bills across the state have risen, highlighting the pernicious nature of the property tax. Appraisals across the state have turned property tax relief into higher tax bills for Texas homeowners.
Beyond its negative impact on homeowners, M&O property taxes are damaging to businesses, especially those that are capital intensive, because property taxes directly tax capital. As a result, investment in plants and equipment in Texas is discouraged.
The 80th Legislature did not pass substantial reforms to the administration of the property tax, and an effort to further reduce the compression rate failed. The complexity of the M&O property tax, its administrative burdens, and the ease with which appraisals increases can negate rate buy-downs, causing taxes to increase, warrants that the property tax be closely examined to determine both short- and long-term solutions.
See the following TCCRI LIFT Perspectives:
“Stop Passing the Buck: Local Elected Officials Should Serve on CADs”; and,
“Sales Price Disclosure: A $250 Million Tax Hike on Homeowners”.
Also, see the following opinion-editorial:
“Ugly Twin Taxes Fatten Government”.
The Property Tax Task Force will study these and other ideas for abating the negative effects of the property tax.