Eliminating Texas’ School M&O Property Tax in 8 Years

This paper is the third in a three-part series, A Roadmap to Abolishing School Property Taxes, examining how to eliminate the massive property tax burden facing Texans. The path to restoring our economic liberty and unleashing prosperity begins by holding state politicians in Austin accountable.

Key Points:

• Texas’ school maintenance and operations (M&O) property tax, about 43% of the current $81.9 total property tax levy, is driving the ever-growing property tax burden on Texans. To eliminate the M&O tax in eight years, the Texas Legislature must:

  • Limit annual state spending growth to no more than 2.9%

  • Allocate 90% of surplus funds created by the spending limit to property tax relief

  • Freeze and then reduce school property revenue each year until school M&O property taxes are eliminated

  • Require local governments to get permission of voters to raise property tax rates above the “No New Revenue” tax rate.

  • Ensure a future Legislature does not backtrack on its promises by making property tax relief permanent through the passage of an amendment to the Texas Constitution

• In eight years—depending on what the Texas Legislature does this session—the school M&O property tax will be either closing in on $50 billion or $0.

• Eliminating the M&O tax will not reduce funding for public schools or change school funding formulas. But it will reduce the property tax burden on Texans, particularly the burden on homeowners and businesses, who pay a disproportionate amount of property taxes today.

Liberty Statement:

Our personal and economic liberty is the foundation of our Texas and American constitutions. Actually owning one’s property and not renting it by force from the government is paramount to strengthening and stabilizing this foundation. Property rights start with the actual freedom to at least own your own property.

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