Governor Abbott Outlines Property Tax Reform Plan
DALLAS (CBSDFW.COM) - In the Meadows neighborhood in North Dallas, like so many others in North Texas, residents have watched property values rise -- along with their property tax bills.
Realtor Kyle Rovinsky says it's had a dramatic impact. "In 2010, at $350,000, the yearly tax bill was $9,000. At $650,000, the yearly tax bill is about $18,000. For the same house, same bricks."
As part of his re-election campaign, Governor Greg Abbott outlined his plan to limit property tax increases. "I say enough is enough."
Surrounded by Republican state lawmakers in Arlington Wednesday, the Governor wants to cap property tax revenue growth to 2.5% each year.
He said to increase spending beyond that, school boards, county commissioners, and city council members would have to pass it by a two-thirds vote, along with a two-thirds vote by the public.
Governor Abbott said, "That money belongs in the pockets of the taxpayers, not in the coffers of the government."
At the news conference, Republican State Senator Kelly Hancock of North Richland Hills said if property tax reform isn't passed it could hurt the state's economy.
Republican State Senator Konni Burton said this issue is her top priority because it's a top concern of her constituents.
But Democratic State Representative Chris Turner of Grand Prairie said local governments aren't to blame. "This is a campaign and election year gimmick from Governor Abbott. The reality is that Mayors and city council members are best suited to make decisions affecting their communities and if the voters aren't happy with the decisions of local officials make, they'll vote them out."
Turner says property taxes are rising primarily because Texas leaders have increasingly relied on them to pay for public schools instead of state funds.
Governor Abbott said his plan would end unfunded mandates on local governments by the state and would give localities flexibility.
Both Republicans and Democrats agree the state needs to change the way it pays for public schools.
Republican State Representative Tony Tinderholt of Arlington said he believes school districts should keep the property tax revenue they collect in their districts.
Now, some districts considered wealthy by the state, must send a portion of their revenues to Austin.
Tinderholt says he and his colleagues from North Texas will discuss proposing the Governor's idea in the form of a bill for the start of the new legislative session that begins in January, 2019.
Property tax reform failed to pass in the Texas House last year.
During the news conference Wednesday, Governor Abbott had a warning for new and returning state lawmakers. "Any candidates running for office this election cycle who refuses to back property tax reform may face rejection at the polls."
But local Mayors may plan to fight the measure.
Harry LaRosiliere, Mayor of Plano said while he supports the idea of tax reform, what disappoints him is that the Governor's plan would erode the freedom of how his city delivers its services.
He said a one-size plan won't work and hurt Plano which he says has thrived.
A spokeswoman for Fort Worth Mayor Betsy Price says she is studying the Governor's proposal.
In the past, Mayor Price has fought back against property cap plans.
But other local leaders, including Collin County Judge Keith Self, have backed previous efforts to cap property tax increases.
As for Kyle Rovinsky, he says homeowners can and should always question their appraisal district about their property values. "I challenge my property tax bill every year. It's our responsibility."
Click here to read Governor Abbott's plan.
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