Eliminating School M&O Property Taxes Is Only Path to Guarantee Permanent Property Tax Cuts

Texas politicians have promised “property tax relief” for decades—three times in the last five years. And failed each time. Many taxpayers saw their property taxes increase this year despite the claims of the “largest property tax cut in history” emanating from Austin. Even those taxpayers who received some relief this year will see their taxes go back up next year. The reason for this is twofold. First, the state does not rely enough on compression to lower the taxes. Second, the state does not do anything to stop schools and local governments from continuing to raise property taxes.

Legislators must stop picking winners and losers on property tax relief and slapping a bandaid on the problem.

HLF's solution permanently constitutionally eliminates the largest part of the property tax burden over ten years without raising taxes or reducing school funding. The state of Texas already funds about 40% of government school budgets. We want to make that number 100%.

The following Q&A explains why the only path to long-lasting property tax relief is through compression and placing stricter limits on property tax increases.

• What is compression?

• Why aren’t existing limits on property tax increases working?

• What happened to this year’s property tax cut?

• Why is compression better than increasing the homestead exemption?

• Will Texas have to increase other taxes or decrease school funding?