Expanding the Homestead Exemption Does Not Offer Meaningful Property Tax Relief
It is no secret that the Texas Legislature’s use of the homestead exemption to reduce property taxes has provided little actual relief for Texans. Today, the Texas Senate wants to double down on this measure and increase the homestead exemption to $70,000. These savings, we know, will be short-lived, like past increases to the homestead exemption, due to rising appraisal values and tax rates.
In a new policy paper from the Huffines Liberty Foundation, we provide a workable blueprint that our friends in Austin—and all concerned Texans—can use to advocate for true property tax relief.
Huffines Liberty Foundation President, former State Senator Don Huffines, issued the following statement:
“Increasing the homestead exemption only benefits a select few Texans in a very short-lived way. Texans are tired of paying rent to the government and having the value of their businesses destroyed. It’s time we realize the unimaginable prosperity for all Texans if we forgo raising the homestead exemption but rather put Texas on the path to eliminate school M&O property taxes, which would benefit all Texas homeowners, businesses, renters, and consumers.”
Huffines further added:
“Texas tax problems are largely self-inflicted. That’s the bad news. The good news, however, is the fixes needed are uncomplicated. This paper charts the way forward through five easy steps:
Limit state spending growth
Freeze school M&O property taxes
Use state budget surpluses to eliminate school M&O property taxes
Require voter approval for local governments to exceed the no-new-revenue tax rate
Enshrine property tax relief in the Texas Constitution
Following this path, the Texas Legislature could cut property taxes almost in half in eight years, or less.”