Good morning –

In today's Texas Minute we will focus on property tax relief. Not vague promises of slowing the growth of the burden in the future, but getting real, tangible relief right now. And without raising or creating any other taxes.

– Michael Quinn Sullivan 

Monday, July 12, 2021
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But first… Congratulations to Matt Rinaldi on his election this weekend to the chairmanship of the Republican Party of Texas!

• While the regular session of the Texas Legislature ended without property tax relief, the special session now underway offers taxpayers the best chance in years. And, perhaps, could set the tone for ongoing relief.
       

• And Texans want it. In a recent poll, 76 percent of registered voters agree property taxes are “a major burden for them and their family,” and an overwhelming 82 percent believe property taxes in Texas are a “serious issue.” Most troubling for incumbents, 71 percent of those polled would be upset “if the current legislative session ended with nothing done to address property taxes.”
        

• With his own primary election heating up, this explains why Gov. Greg Abbott’s special session call included “property tax relief” from the “available general revenue.”
     

• How much “general revenue” is available, and how much will lawmakers devote? That second question depends on you; we will hit on that momentarily.
      

• As for the first… According to the Office of the Texas Comptroller, approximately $7.85 billion in general state revenues was not expended by lawmakers; that’s surplus money and it should be returned to the taxpayers.
      

• For comparison, local governments in 2020 collected approximately $71 billion in property taxes. Of that, approximately $55 billion is collected by school districts.

• This means – theoretically – if lawmakers are so inclined, the available $7.85 billion in surplus “GR” dollars could be used to reduce your property tax burden by 10 percent (five percent in year one of the biennial budget and another five percent the next). 
      

• …If lawmakers are so inclined...
        

• Given the stronger spending limit adopted by the legislature earlier this year that will impact future state budgets, surplus revenues will become an enduring feature of the Texas budget.
     

• So, yes, that big pile of money could be getting bigger and bigger. Your challenge, and the challenge for your fellow taxpayers, is to demand that legislators today develop a mechanism so future surpluses fund property tax relief and elimination.
      

• Yes, lawmakers could dedicate those surpluses to continuing to cut property tax burdens in future years – eventually eliminating school property taxes altogether. And if legislators chose to cut spending… well, those property tax reductions could happen even faster.

• 🚨 WARNING 🚨: Some legislators will puff their chest out and condescendingly tell you they cannot guarantee future property tax relief from future surpluses, because a current legislature cannot “bind” a future legislature. 
      

• The correct response is to laugh at them.
      

• Legislators – Republican and Democrat alike – think nothing of “binding” future legislatures with bigger government and ongoing programs, and binding taxpayers with the cost. They just need to be told to put that same law-making energy into protecting your property rights by protecting your right to actually own your property rather than renting it from the government.

• But it has to start somewhere, so it might as well start now with the multi-billion-dollar surplus. It will only happen if you and your neighbors speak up. Loudly.
      

• Texas taxpayers are done with “promises” to cut property taxes in the future; they need to see action now. A report from the Texas Public Policy Foundation shows property taxes have skyrocketed by 181 percent in the last 20 years. (A period in which the Texas GOP held every statewide office and commanding majorities in both legislative chambers.)
      

• It is time for 20 years of (misplaced) trust to be rewarded with an actual reduction in property tax burdens.
         

• What taxpayers must not do is say, “Cut my taxes and also spend some on this or that.” As soon as you give lawmakers an option other than cutting taxes, they will take that other option every time… and your taxes will never be reduced.
      

• Why? Because everyone in Austin wants a piece of that $7.85 billion surplus for something else – including Gov. Abbott! His special session call also includes using those surplus dollars to pay for “enhanced protection” for children in foster care and to “safeguard the state from potential cybersecurity threats.”
       

• How much – if any – of the current surplus will be used for real, meaningful, and substantial property tax relief is going to be determined in large part by how much lawmakers hear from taxpayers. Same goes for the future commitments.
      

• Folks can find the contact information for their Texas House and Senate members in our Directory of Elected Officials. (And don’t let anyone use “my legislator is a Democrat” as an excuse not to call and write; the legislators don’t pay attention to party labels when spending your money.)
         

• So, you want property tax relief? There has never been a better time than now. Your legislators just need to be hearing from you.

Directory of Your State Lawmakers