Fresh off another round of property tax relief signed into law, Texas Gov. Greg Abbott is now looking to prevent cities and counties from swallowing it up. Abbott wants state lawmakers to pass legislation restricting spending by local governments, similar to the limits already placed on the state. Abbott recently told Hearst Newspapers, "Every property taxing jurisdiction must live within the same spending limits that the state has to live in."
Abbott went on to say he wants to champion this issue statewide, similar to his recent successful efforts on bail reform and school choice. The property tax issue has become frustrating for Texans in recent years, as the legislature has passed cuts only to have local governments turn around and raise taxes again to cover new spending. This has happened in Harris County, which raised taxes last year in the aftermath of Hurricane Beryl, and will do so again this year if County Judge Lina Hidalgo has her way.
James Quintero, policy director at the Texas Public Policy Foundation, says this type of action is long overdue to rein in property taxes. "Because local governments lack fiscal discipline, it signals a need for the legislature to adopt a more comprehensive fiscal rule, like a local spending limit based on population and inflation," he tells KTRH.
While state lawmakers can cap and reduce tax rates, local jurisdictions have repeatedly found loopholes to get around and exceed those limits. "Ultimately we have to get to a place where we're putting guardrails around spending, because spending is the problem," says Quintero. "And unless we get to that root, we'll never fully address what's happening at the local level with these property tax hikes."
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