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Sustainable property tax relief in Texas
The new search for lasting property tax relief began Friday morning with a hearing by the House Select Committee on Sustainable Property Tax Relief.
AUSTIN, Texas - The new search for lasting property tax relief began Friday morning with a hearing by the House Select Committee on Sustainable Property Tax Relief.
Members and the Chairman of this special committee acknowledged that past attempts have not lasted very long.
"While these pieces of legislation have all contributed to slowing the growth of property taxes, these approaches are missing components to combat the rapid growth in appraisals and the impact and the impact that has on tax bills for homeowners and businesses alike," said Committee Chairman Morgan Meyer (R) Dallas.
The first to testify was Shannon Murphy from the state Comptroller’s office. She told the committee that low interest rates and a low inventory of property for sale were major factors in the recent spike in values. Murphy presented a series of graphs and charts tracking property values between 1999 and 2022.
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House democrats pitch property tax cut idea
Republican leaders remain in a stalemate over how to provide a property tax cut. Thursday, a group of House democrats pitched their own ideas.
The latest spike started about two years ago. It is larger than one in 2007. That increase was followed by a big price collapse and recession.
"You're not really commenting or identifying that they're going up a lot, just that they are going up a lot for everybody," asked Laredo Democrat Rep Richard Raymond.
Murphy answered by saying everybody is treated the same. Rep. Raymond to make a quick response to that by describing the treatment Murphy referred to as, "Bad, badly."
MORE COVERAGE:
- House Democrats pitch new property tax cut plan to break GOP stalemate
- Texas lawmakers return to Capitol with no property tax deal
The committee was also reminded, during the hearing, as to how tax bills are calculated. They are essentially based on an assumption of what the property may sell for and not hard numbers.
"The state of Texas is one of seven states in the nation that does not have mandatory sales price disclosure. And I'm not here asking for it. I'm just giving you information," said Brent South with the Texas Association of Appraisal Districts.
The committee was also urged, by small business advocate Annie Spilman, not to focus only on homeowners.
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Texas Senate passes new property tax bill
The Texas Senate passed a property tax bill, which happened after a flurry of vetoes from Governor Abbott. Travis County Republican Party chairman Matt Mackowiak joined FOX 7 Austin's Mike Warren to discuss.
"My members are telling me every day it's literally a day by day situation. They do not have tax reserves on hand. And, you know, we're seeing our communities, you know, community identity kind of fall by the wayside because as go our small businesses, really, that's how our communities will go as well, unfortunately," said Spilman who is with the National Federation of Independent Business.
The hearing ended with no plan being pitched and no vote being taken. But with inflation adding to the financial pressure on everyone, several committee members indicated they understand this discussion has to result in action.
Some of those who testified endorsed the idea of compression, which involves using state tax revenue to buy down tax bills, which is a key part of the House property tax cut plan.
So, it’s possible the information from this select committee could factor into the current property tax cut stalemate with the Senate.