If Texans are ever going to revolt over property taxes, this year’s shocking appraisals may do it
If Texas is ever going to have a revolt over higher property taxes, the conditions seem ripe.
People around the state, and in Dallas-Fort Worth in particular, need fainting couches to open the latest assessment of their homes. Even appraisal-district officials are stunned at the increases in property values, driven by unrelenting population growth that sends house prices only up, up, up.
Shock soon turns to anger. And in politics, anger has to be channeled. But where?
Local governments are taking in more revenue and spending more without raising tax rates. So, naturally, some people say that to meaningfully reduce property levies, we can slash spending at the state and local levels.
Large cuts at school districts, the biggest part of local tax bills, would be difficult to swallow. Administrative costs are a frequently mentioned target, especially diversity and inclusion programs. But the growing population includes more children, and they need more teachers. The biggest single cost for any government is salaries.
And “have fewer teachers” or “pay teachers less to cut property taxes” isn’t a winning plan anywhere, even Texas.
On a personal level, homeowners should take every step they can. If you live in the house you own, apply for the homestead exemption. Check if you’re eligible for other breaks, based on disability, for example. If you’re 65 or older, make sure to apply for an exemption that will freeze your taxes.
And everyone who can should protest their appraisal increases. It’s time-consuming, but significant savings are possible.
More sweeping changes to the appraisal process might help, but it’s wonky. Democratic governor candidate Beto O’Rourke wants to require disclosure of home-sales prices, which could be useful long-term but may not do much in a booming market. He also says the state can ease the burden by legalizing marijuana and perhaps more gambling, but the tax revenue from those would be modest.
The most realistic option is for the state to pay more of the cost of public education. That’s been happening, slowly, for a few years. But that money has to come from somewhere, and we’ve rightly ruled out a state income tax. So it’ll be gradual, and if the economy dips and other state revenue falls, it’ll require tough choices.
Leaders of all stripes talk about ensuring that commercial property is properly taxed so that businesses take on more of the burden. But when they want to entice businesses to Texas — say, Elon Musk’s new plaything, Twitter — tax breaks are a big part of the mix.
Any step to address property taxes is less of a solution and more of a trade-off. But problems that fester can open up new political possibilities.
The higher the bills rise, the more likely that something’s got to give.
Editor’s note: A version of this column originally appeared in our opinion newsletter, Worth Discussion. It’s delivered every Wednesday with a fresh take on the news and a roundup of our best editorials, columns and other opinion content. Sign up here.
