Op-Ed By State Representative Keith Bell
Texas is known far and wide as a low-tax state, boasting the fifth lowest taxes in America. This is one reason we are one of the most economically strong places to do business on Earth. Each year, companies and jobs flock to Texas, us the top exporting state in America - exporting more products than the following three highest states combined.
But despite this reputation, there is one kind of tax Texans pay more of than most other states: property taxes. When I got elected to the legislature in 2020, I planned to lower property taxes once and for all. At that time, Texas had the 2nd highest property tax bills in America. I have since voted to lower property taxes during every legislative session. While we’ve made progress, Texas is still ranked 7th highest. It’s clear that we still have much more work to do.
This year, I will push for the biggest tax cut in Texas history – it may be the biggest in any state’s history.
Texas is known for being a fiscally conservative state. When COVID hit, we did not raise taxes like many other states. Instead, we figured out ways to lower taxes. States that raised them are now suffering, while states like Texas are thrivmaking ing. California raised taxes and now faces a $22.5 billion deficit. Of course, they will raise taxes again. But Texas, after cutting taxes every legislative session since COVID, has a surplus of $32.7 billion- more than the entire state budget of 29 states.
So, what should Texas do with all that money? Pass a new spending program? No. We should pass the most significant tax cut ever and let Texans benefit from Texas’ fiscal responsibility.
We will do it on every front. First, we will increase your Homestead Tax Exemption- a simple and permanent solution. We raised the exemption by 60% to $40,000 in the last session of the legislature by passing a Texas Constitutional Amendment. You and your fellow citizens voted with nearly 88% of the statewide vote in favor of this tax cut. This year, I want to increase the exemption once again.
But we should not stop there. We must work to cut your local school taxes (education taxes are the largest share, by far, of your local property tax bill). Part of public school spending is paid by the state, while part is paid by local taxes. Currently, local taxes are covering too much as statewide education spending has shrunk. In the last two sessions, we began to turn that around. As the state pays more, local property taxes pay less.
One other property tax reform measure is very close to my heart. This legislative session, I introduced a bill to reform the appraisal process. My bill, HB 868, will cut the amount your home tax appraisal can rise to just 3.5% per year. As we’ve seen over the last several years, home appraisals can be more volatile than the stock market. During the COVID pandemic, home prices went down and then shot up. A person not buying or selling a home has watched as their tax bill increases out of control. My bill will stop this volatility by lowering the appraisal cap. Though appraisal caps like this one have failed in the past, this is the year we have the best chance we have ever had.
States across the nation are taking notice of what Texas and other states are doing to lower taxes. They might soon come to realize that high taxes are economic poison. By lowering taxes in a substantial, permanent way, we can put money back in the pocket of every Texan family and empower them to make their own financial decisions.
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