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Saturday, November 16, 2024

Abbott proposes to use $27 billion surplus to deliver 'largest property tax cut in Texas history' as Dallas County residents shoulder high tax rates

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Texas Gov. Greg Abbott | Greg Abbott/Twitter

Texas Gov. Greg Abbott | Greg Abbott/Twitter

High property tax rates have become an important issue in the State of Texas, in particular with the midterm election coming up on Nov. 8. Both candidates for Governor, incumbent Gov. Greg Abbott and challenger Beto O'Rourke have promised action on this issue to lower the financial burden to Texas homeowners. In 12 of Texas' most populated counties, including Dallas County, the median effective property tax rate is higher than the statewide figure.

TaxRates.org measures the median effective rate for all of Texas to be 1.81%. This figure measures the percent of a home's taxable value that is collected by taxing authorities, meaning any tax exemptions on the property are factored into the rate. TaxRates.org reports that Dallas County’s median effective residential property tax rate in 2022 is 2.18%. Based on these figures, Dallas County residents have a property tax burden 20% higher than the statewide average.

Dallas County's property tax burden seems even more inequitable when viewed against the property tax rates of other states. Two states often compared to Texas, California and Florida, have lower effective property tax rates than the Lone Star State at 0.74% and 0.97% respectively. Dallas County residents have a property tax burden 2.95 times higher than Californians and 2.25 times higher than Floridians.

According to World Population Review, about 64% of Texans live in the 12 most populous of Texas' 254 counties. Dallas County has a population of 2,662,619, which accounts for 8.89% of the State's residents. The county has seen a 12.44% increase in its population since 2010.

Texans may soon see some relief on their property tax bill. During a September debate, Abbott and challenger Beto O'Rourke both identified high property tax rates as an issue worthy of action. Abbott promised to use state budget revenues to buy down property tax burdens for homeowners. O'Rourke pointed to increasing the tax burden on commercial properties, adding new revenue streams such as legal marijuana, and expanding Medicaid.

"Texas is sitting on a $27 Billion SURPLUS because of our record setting revenue. We will use much of it to deliver the largest property tax cut in Texas history," Gov. Abbot wrote in an Oct. 17 Twitter post.

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