Texas Scorecard by Jeramy Kitchen August 9, 2021
The bill would work to bring the school maintenance and operations taxes to zero by using surplus monies to “buy down” those rates.The bill would work to bring the school maintenance and operations taxes to zero by using surplus monies to “buy down” those rates.
Texans all across the state are reporting ever-increasing property tax burdens and hoping to receive tangible property tax relief out of the ongoing special legislative session.
These increases are happening despite the property tax reforms passed by the Legislature in 2019 that limited the rate by which property tax valuations could increase.
On Monday, State Rep. Tom Oliverson (R–Cypress) filed a bill to address this very issue.
The property tax system is admittedly complicated. In short, the bill as filed uses 90 percent of surplus funds located in both the general revenue and general revenue-dedicated accounts to “buy down” school district maintenance and operation property taxes until they reach zero. It precludes school districts from imposing a certain rate for that same school year and any school year thereafter until the rate reaches zero.
Upon elimination of the maintenance and operation taxes, surplus dollars would be returned to use for their current general purposes. (Brass tacks: The bill provides a framework for school maintenance and operations tax rates to approach zero by having the state provide for that decrease.)
In response to the bill being filed, Vance Ginn, the chief economist of the Texas Public Policy Foundation (TPPF) said:
“Texans want a lower property tax bill, and our goal is to eliminate it as fast as possible. The Legislature can help achieve this by using most if not all the state’s $7.85 billion surplus to reduce school district maintenance and operations property taxes, which comprise nearly half of total property taxes levied statewide, now and then pass HB 122 to eliminate the rest of it by 2041. By following this approach of limiting government spending and returning money to taxpayers, Texans can prosper for generations to come.”
More:
https://texasscorecard.com/state/bill-aimed-at-providing-tangible-property-tax-relief-is-filed-in-the-texas-house/
