Texan voters are likely to approve a constitutional amendment next month that will provide a bit of relief from property taxes,according to The Texas Observer. The measure is expected to save homeowners’ property an estimated $126 per year on average—but it comes with its own price tag. If the amendment prevails, there will be a permanent increase in state spending to the tune of $600 million annually. The new spending aims to cover the loss of property tax revenue to school districts. The added spending will come on top of over $8 billion in the current yearly budget, which lawmakers have implemented to make up for three previous property tax relief measures.
Now the state will spend about $9 billion dollars annually offsetting property tax cuts. That amounts to 8% of Governor Greg Abbott’s new budget. The property tax relief probably won’t look like much to most homeowners, and much of it will be offset by rising appraisal costs. Supporters insist the measure is worth it, because of how fast property taxes are rising. Critics insist that the property taxes were part of a complex system that ultimately benefits education.
