We hear it over and over anytime a conversation about property taxes comes up. “If we have to pay property taxes, do we really own our property?” The assumption is correct, if you are bound to pay the government property taxes perpetually as a homeowner then isn’t it like paying the government rent for your own property?

What would actually happen if you were to stop paying your rent (property taxes)? According to the Comptroller of Texas Website:

If taxes go delinquent, the tax collector adds a six percent penalty and one percent interest on Feb. 1. Penalty continues to accrue at one percent per month until July 1. On July 1, the penalty becomes 12 percent. Interest will be charged at the rate of one percent per month, with no maximum. Private attorneys hired by taxing units to collect delinquent accounts can charge an additional penalty of up to 20 percent to cover their fees. If the delinquency date is postponed, penalties and interest begin accruing on the postponed delinquency date.

If you don’t pay can they foreclose on your property? Actually, yes they can.

In Texas, there is no time limit after you are delinquent in which a taxing entity can start the foreclosure process according to the Texas tax code (Tex. Tax Code § 33.41). So if you do not pay your taxes, technically the government can levy heavy fines against you and foreclose on your property immediately after delinquency.  Does it sound like you own your home in Texas?

What can be done then? Is TFR advocating that there should not be penalties for people who evade taxes? No, we certainly are not. We are saying that Texas should give no one any reason to evade property taxes by completely eliminating them altogether.

When someone suggests the elimination of property taxes, it is usually followed by some typical questions:

How would it be possible to eliminate it?
How would we fund schools?
But you have to raise taxes somewhere else right?

What if you were told there is a plan which could begin the path of property tax elimination that would both: 1) fund schools, and 2) not raise taxes anywhere else (no consumption-based “tax swap”)? Not only is that possible, but the time to eliminate property taxes has never been better.

Recently TFR posted an article outlining our plan to eliminate the school property tax portion by using the recently announced $7.85 billion surplus announced by the Texas Comptroller of Public Accounts. This surplus was made possible in part by a bill that was passed this session that limits Texas spending to population-plus-inflation. This new limit will ultimately result in reoccurring budget surpluses in the coming years.

This is our path to property tax elimination.

The legislature must simply act and apply the entire surplus to the school portion of property taxes. This must occur before legislators do what they always do: waste more money on unnecessary bureaucracies and corporate subsidies. By dedicating the current and future state surplus to cutting property taxes, and cutting away wasteful spending, Texas could virtually eliminate the “school M&O” property tax within the decade – and possibly the rest not long after.

There is a clear path to elimination, but will our lawmakers commit to prioritizing property tax elimination and relief? Abbott has placed property tax relief on the special session agenda. There are already a few bills pending before the Texas Legislature that would apply the surplus to relief, but the strongest one is HB 122. That measure applies 90% of future surpluses to property tax relief.

If the legislature doesn’t provide meaningful and substantive property tax relief for taxpayers, there will be no one to blame but themselves.

In a recent report released by TPPF, Vance Ginn and James Quintero laid out a proposal for property tax relief that echoes both the grassroots and TFR’s plan last week. They are calling for the legislature to buy down M&O property taxes with the recent budget surplus of $7.85 billion.

“Under this buydown approach, every tax dollar not spent by the state will produce a property tax cut for Texans. Following our plan would let the Texas Legislature keep its pledge to taxpayers by actually lowering property tax bills—something missing in most other plans.”

TPPF calls for the legislature to keep its promise to Texans and actually lower tax bills, not pass do-nothing legislation that doesn’t provide any relief.

HB 122 is the closest bill that has been filed to accomplish the maximum amount of property tax relief for taxpayers in the special session. The bill calls to use 90% of surplus dollars to buy down M & O property taxes resulting in almost 10% savings for most Texans. TFR suggests the most effective approach would be to dedicate 100% of every future budget surplus in combination with cuts to future budgets to eventually eliminate school property taxes completely.

This plan couldn’t come at a more crucial time as Texans are becoming aware that property taxes are continuing to rise. Indeed, Texas property taxes have risen 181% in the last 20 years–a move that outpaces other states.

Texans already had sky-high property taxes that were the 7th in the nation last year. Now, new numbers show that Texas taxpayers’ have the 6th highest property tax burden. 

That’s a trend in the wrong direction despite Republicans promising to cut their property taxes and controlling every statewide office in Texas for over 20 years.

One thing is certain, the need for property tax reform has never been more apparent. The legislature has a golden opportunity to come through on their promise of relief and plenty of time to accomplish it. (Who knows how long the Democrats will give them?) Now is the time for property tax relief, all taxpayers that want lower bills should be focused on letting their lawmakers know this.

For years, the desire for property tax relief has been at the top of Texans’ concerns.

As a matter of fact, in a recent poll conducted by our friends at Texas Public Policy Foundation, it was revealed that 71% of registered voters would not be happy if nothing is done on property taxes. It is an issue that has been largely ignored and side-stepped by the legislature despite the loud outcry from citizens on both sides of the aisle. The special session has given the Texas legislature to finally provide relief on the ever-increasing tax burdens placed on Texas homeowners.

When TFR found out a special session had been called by Greg Abbott, we encouraged subscribers to call and engage his office to place property tax relief on the special session agenda items list. In a major win for grassroots fiscal conservatives, Abbott conceded to the pressure and he placed property tax relief on his agenda items for the special session.

In a recent KVUE interview regarding the Democrat walkout, Abbott addressed his call for property tax relief. When asked how he would get Democrats back to Texas to vote on election integrity reform, he responded by naming other bipartisan issues important to constituents. “I know for a fact that your viewers right now, they care a whole lot about, such as property taxes. Property taxes are sky-high in the Austin area and we have a bill to reduce those property taxes.”

From this interview, we know there is a bill in the works, but that has not been revealed as of yet. TFR sees this special session as a very unique opportunity to provide relief through the use of surplus funds to pay down property taxes. Let me explain.

In a recent report released by the comptroller, it was revealed that Texas is expecting a $7.85 billion surplus for the 2022-2023 biennium.

This surplus is the perfect unexpected event that can be used to pay down property taxes and provide significant, immediate relief to overburdened Texans. TFR estimates this would result in a 10% decrease for homeowners (5% for each year in the biennium). Even better news is this should be a frequent reoccurrence in future Texas budgets because of the recently passed spending limit passed during the 87th legislative session.

This reoccurring and increasing surplus could be used repeatedly to pay down property taxes until their eventual elimination. We finally have a legitimate path to the elimination of property taxes, without tax swapping, or increasing sales taxes. TFR encourages all taxpayers to demand that the governor dedicate this money directly to property tax relief and keep his promises to Texans.

There is one thing that is for sure: the special interests and lobbyists are chomping at the bit to get Abbott to dedicate that revenue to their pet projects and to subsidize their clients’ businesses. The question is will the voice of the grassroots be loud enough to be heard over Austin’s special interests?

If you are concerned about your property taxes, you can call Abbott and your legislators and let them know you demand property tax relief now!