Unprecedented state revenues allowed Texas lawmakers this year to propose reducing school property taxes by billions of dollars to help ease some of the burden on property owners through increased exemptions, reductions in school district tax rates and limitations on appraised values for certain properties. It was an arduous journey, with lawmakers tackling the issue in the regular legislative session and in two of the special called sessions in 2023.
Property taxes accounted for slightly over half of the total tax revenue (PDF) for local and state government in 2021 and slightly under half in 2022 (Exhibit 1). This fall, with the passage of Proposition 4, Texas voters elected to put some money back into property owners’ pockets.
EXHIBIT 1: TAX REVENUE BY SOURCE, 2021-2022
| Type of Tax | 2021 Tax Amount | Percent of Total Tax | 2022 Tax Amount | Percent of Total Tax |
|---|---|---|---|---|
| Local Property Tax | $73.5 | 50.6% | $79.4 | 47.0% |
| State Sales Tax | $36.0 | 24.8% | $43.0 | 25.5% |
| Local Sales Taxes | $10.4 | 7.1% | $12.2 | 7.2% |
| Other State Taxes | $25.5 | 17.5% | $34.2 | 20.3% |
| TOTAL TAXES | $145.4 | 100.00% | $168.8 | 100.0% |
Source: Texas Comptroller of Public Accounts
Recent Comments