When Texas homeowners hear that property taxes may be capped in coming years, they’re ecstatic, but there may be some disadvantages to the community due to the loss of income from annual property tax increases. Many local government leaders worry that these caps will cripple local works and government planning, but it also sets a worrisome precedent that could allow state government to impinge on other areas of local government. In this post, we’ll take a look at the Governor’s proposed property tax cap and how it could impact your income tax bill and your community in the coming years.
The Proposed Property Tax Reform Bill
The current bill set forth by Governor Greg Abbot and Lieutenant Governor Dan Patrick is modelled after Governor Abbot’s 2018 proposed bill. It would limit growth in property taxes to 2.5 percent from one year to the next. Any increases above 2.5% will require approval from voters. With the stated goal to put pressure on local governments to control spending and avoid drawing too much revenue and putting too much strain on the property owners in their districts.
Potential Concerns for Local Government
Much of the decision on property values and tax percentages starts with your local government, and these local officials worry that the proposed cap on property taxes may make it difficult for them to maintain roads, keep school systems flourishing, and ensure the conservation of other local works. While many homeowners consider local government to blame for the increases in property taxes, some of the pressure to increase local property value and tax income has come from the top. The increases in property taxes have allowed the state to reduce the amount of funding they provide to support public education, putting that burden back on property owners through increases in taxes.
When You Can Cast Your Vote
While the entire Texas property tax situation is complex (to say the least), one thing is clear – something has to change. Home tax rates in the state of Texas are among the highest in the nation, and Texas property owners pay almost double the national property tax average. The proposed property tax cap will start with a dual bill presented to the state house and senate in 2019. There will likely be changes and further votes to come before property owners have an opportunity to weigh in, but keep your eyes peeled in the coming years to find out when it’s time to cast your ballot. You can follow the process online through the Texas Legislature website.
Let Home Tax Solutions Lend a Helping Hand
Regardless of how this proposed bill shakes out for Texas homeowners, you can always rely on Home Tax Solutions to help you fit the cost of your property taxes into your family’s budget and keep you in your home, no matter how high property taxes sky rocket. When you’re ready to get started working with us, take five minutes out of your busy schedule to complete our simple online form. We look forward to working with you soon.