Homeowners may not be surprised to learn Texas still ranks among the states with the highest property tax rates.
Many Texans say a rapidly rising local property tax burden is one of the state's biggest challenges. A recent report by ATTOM Data Solutions has the Lone Star State at 2.15% on average, which they rank as the third highest tax rate in the nation.
“Texans are getting hit hard by property taxes from really no fault of the homeowner at all. It really has to do with the appraisal, and then the elected officials ratcheting up those tax rates,” Texas Public Policy Foundation Chief Economist Vance Ginn said.
However, he believes that could change with a proposal in the Texas Legislature called House Bill 59. If passed, it would eliminate the school maintenance and operations portion of a property tax bill by January 1, 2024. The legislation would also create a commission to study the best ways to replace that revenue. Ginn suggests moving to a reformed sales tax.
“That would been a huge boon not only for Texas as a whole to make us more competitive [in business], but also help [Texas homeowners] in our daily lives and in our pocketbooks,” Ginn explained.