Property tax revenue for local governments and school districts in Texas surged in 2024, increasing by $5.4 billion over the previous year.
This is the second year in a row that the property tax levy has increased since property owners were promised “property tax relief” through what Texas Governor Greg Abbott and other politicians called “the largest property tax cut in Texas history--$18 billion” during a special session of the Texas Legislature in 2023.
Some homeowners did experience a tax cut in 2023, but much or all of that was wiped out by the recent increase. Many taxpayer advocates expressed frustration at the unwillingness of Texas’ political leaders to provide long term property tax relief. Since 2018, local property tax revenue is up $23.6 billion, 37.4%.
"After nearly a year and half of some elected officials insisting that the Legislature provided the largest property tax relief package in history, despite evidence suggesting the opposite, the most recent data proves what TFR [Texans for Fiscal Responsibility] and fiscal conservatives have been saying for months: the relief promised did not materialize," said Andrew McVeigh, president of Texans for Fiscal Responsibility.
In 2023, the Texas Legislature dedicated $12.7 billion of the state’s $32 billion budget surplus to property tax relief, specifically to cutting school property taxes. But taxpayers saw much of their potential tax cuts disappear as local governments and school districts raised property taxes over the last two years.
According to Texans for Fiscal Responsibility, counties, cities, school districts, and special districts would have increased their revenue by $12.1 billion over the two-year period if not for the Texas Legislature’s effort. Even with that, property tax payments by landowners still increased by $6 billion.
Some Texas legislators also expressed frustration at the state’s inability or unwillingness to slow down tax increases at the local level.
“It’s pretty straightforward,” said state Rep. Mitch Little. “The relief is not reaching the taxpayer. We bail one bucket out of the front of the boat by buying down the rate; the appraisal districts and school districts fill up the back of the boat with increased appraised values and bond debt.”
Texas Comptroller Glen Hegar recently announced that Texas has a $24 billion budget surplus for the current two-year fiscal biennium. As the Legislature begins its budgeting process for the next two years, politicians are already coming up with ways to spend it.
For instance, Gov. Abbott and Texas Lt. Gov. Dan Patrick announced they want to create a new Texas Nuclear Energy Fund which would provide subsidies to investors who want to build nuclear energy electric generation facilities. This comes on the heels of an announcement by Patrick that he wants to create the Dementia Prevention and Research Institute of Texas. The cost of both initiatives could top $10 billion.
Texas taxpayers are also interested in sharing in the budget surplus, saying that the money is the result of an overpayment of taxes, and they would like it back rather than it being spent on new projects.
“Continued skyrocketing property taxes is the result of excessive state and local government spending and weak levy limits,” said Vance Ginn, research fellow of Texans for Fiscal Responsibility. “Texans deserve better from the 89th Texas Legislature.”
The data showing the increase in property tax revenue was recently released by the office of Texas Comptroller Glen Hegar.
