'Big 3' Texas Leaders Unveil Bills To Limit Property Tax Hikes
AUSTIN and FORT WORTH (CBSDFW.COM) - In an unprecedented move, Governor Greg Abbott, Lt. Governor Dan Patrick, and new House Speaker Dennis Bonnen unveiled identical bills to limit property tax hikes.
The bills, known as HB2 and SB 2, are exactly the same, and were presented by the state's "Big 3" leaders during their second joint news conference this month.
Governor Greg Abbott said at a news conference at the Capitol, "The voters demanded this and this demonstrates the Texas Legislature is responsive to the needs of our voters. We are here in the Capitol working to make sure we reform a property tax system in Texas that is costing our taxpayers way too much."
Vince Puente, President of Southwest Office Systems in East Fort Worth, said he's watched the firm's property taxes rise over the years. "I'm not happy about it."
He said it's great there's no personal income tax in Texas, but that the property tax bill often stings. "We feel like it's a discouragement to businesses moving to this area."
Under the proposed bill, school districts would be capped at increasing property tax revenues by 2.5 percent from the year before.
State officials say that would force the state to use more of its revenue to pay for schools.
Currently, the Texas Comptroller reports the state is paying 36 percent of the cost of the cost for public schools, while property taxes are funding the remaining 64 percent.
Sources say under a soon to be filed bill to reform school finance, if school districts vote to increase property tax revenues by more than 2.5 percent, the state would "recapture" the extra money raised - in an effort to discourage the practice.
Dallas ISD Superintendent Dr. Michael Hinojosa said, "We don't know how the details are going to work out and our costs continue to grow and so we need to have some room so we want to be at the table and I've been invited to be at the table so we'll be there, but we're concerned about caps."
Cities, counties, and other local taxing districts would not be able to raise more than 2.5 percent in property tax revenues from the year before unless they call for an election in November and have voters decide.
That threshold is now 8 percent.
The proposal doesn't include homes and businesses built this year.
State officials say this would give cities and counties extra money to spend on police officers and firefighters and building new infrastructure.
At their news conference, the state's legislative leaders warned local officials to work with them and not against them.
Lt. Governor Patrick said, "The days of saying no, we're going to kill then I'll because we don't want change. Today sends a clear message: that day is over."
Speaker Bonnen agreed. "You will not be dividing the House and Senate and the Governor on the solution. So join us in finding the right solution because we're already joined together."
That's far different from 2017 when the House and Senate sharply disagreed over proposals.
Democratic Dallas County Commissioners Court Judge Clay Jenkins said he doesn't think the state's proposal will fix the problem. "We are working with them. I'm laying out for then what I believe needs to happen. They need to fix the mess that they created."
The Chairman of the Texas House Democratic Caucus, Rep. Chris Turner of Grand Prairie said in a news release, "The state needs to increase its share of public education funding in order to reduce the local burden. An arbitrary revenue cap, one that will also make it more difficult for local communities to fund public safety, is not going to solve this problem."
As for Vince Puente, he likes the state leaders' idea. "If we can at least have a cap, have a way for the people to vote on it, I think they will make a tremendous impact."
A Texas Senate committee will hold a hearing on property taxes Wednesday morning, February 6.
State lawmakers will still have to approve HB 2 and SB 2 by the Memorial Day weekend.
