Texas Schools, Cities, Counties Scheming to Offset Legislature's Tax Relief

The Texas Legislature this year approved historic property tax relief, but homeowners are warned not to let their guard down.

That's because local governments and school districts continue to scheme to squeeze as much money out homeowners as possible. 

"What we're seeing right now is a lot of that relief being eroded through the tax rate setting process and everybody adopting budgets much bigger than they ought to be," says James Quintero, policy director for the Texas Public Policy Foundation's Government for the People campaign.

At least 17 Texas school districts are holding voter-approval tax rate elections to raise rates higher than otherwise allowed.

"Which means in November, they're going to come hat-in-hand to voters, asking for permission to set a tax rate that is higher than the voter approval tax rate, meaning it's a big tax rate increase."

That includes taking on debt without voter approval.

"Things like certificates of obligation and tax anticipation notes," says Quintero. "There are lot of financing mechanisms out there that don't require voter approval, and then allow these local jurisdictions to spend way more than they ought to."