Has Anyone Tried to Rectify High Texas Property Tax?
Property tax rates are different in each of the 50 states, and therefore some states have a much higher property tax rate than others. If you read our blog post titled, How Do Texas Property Taxes Compare to Other States, then you already know that Texas ranks highly among U.S. states for property taxes, meaning that it has one of the highest property tax rates. Since Texas is one of the most populated states in the country, and a large part of the state’s population are homeowners, the Texas property tax rate affects millions of people.
But, why is the Texas property tax rate so high? And has anybody ever tried to lower it? We are Simplicite Tax Loans, a lender offering Texas property tax loans, and today’s blog post will be answering these questions.
Why are Texas Property Taxes So High?
If you haven’t done so yet, we encourage you to read our previous blog post for a more thorough and in-depth analysis of property taxes in Texas, how property taxes are assessed, and where Texas property taxes fall statistically. However, here are a few things to consider:
First off, Texas does not have a statewide property tax. Rather, property tax rates are set and assessed by local taxing authorities such as school districts, cities, and counties. Therefore, there are hundreds of different property tax rates across the great state of Texas. The average of all of these assessment rates is generally quoted as the “property tax rate in Texas.”
Second off, the overall tax burden for Texans is better than in 28 other states. So, while some states might pay a lower property tax rate each year, they are actually burdened by a higher overall tax rate.
Lastly, the overall cost of living in Texas is desirable. It’s better than 36 other states, making it the 14th overall most affordable state. Texas municipalities need to get their budgets funded somehow, and property taxes are one of the main revenue sources that they use.
So, the short answer to our question is: Texans are afforded breaks from other regular costs of living (such as state income tax), so the quality of life that they enjoy winds up being funded primarily by property taxes. This means that property taxes have to bring in enough government revenue to fund most municipal services.
Has Anyone Tried to Lower Property Taxes in Texas?
It will satisfy you to know: yes, they have. In fact, current Texas Governor Greg Abbott is prioritizing property tax reduction in an effort to slow overall property tax growth. Additionally, legislators in Texas have made several prior attempts to lower property tax rates.
In 2019, a few changes were made by both the House of Representatives and the Senate to help with the Texas property tax rate. First, House Bill 3 included billions of dollars for schools that was supposed to allow districts to lower their property tax rates. In effect, it would put a cap on the property tax rate assessed by school districts. Second, Senate Bill 2 was structured to shift some power to voters, making it a requirement for local taxing authorities to get voter approval if they ever intended to raise property tax rates by more than 3.5%.
As a further measure, Texas legislators raised the homestead exemption to $25,000 in order to help prevent property tax growth. The homestead exemption determines the portion of a home that is not taxable, so by increasing this exemption figure they decreased overall assessment amounts that homeowners can are taxed – even if only by a small amount.
What is the Solution?
This is where politics and differences of opinion come into play. Like most political issues, there is no simple answer or solution. Schools, police, firefighters, infrastructure, and other tax-funded services need to be paid for somehow, otherwise they can’t operate properly. So, you can see the conundrum that this creates. How you do you ensure that public services persist without creating the revenue to pay for them? And as services become more expensive, how do you pay for them without raising property tax rates? There are no simple solutions to these issues, as you can tell.
Our Stress-Free Property Tax Loan Process
We know that property taxes in Texas are steep, so plenty of property owners find themselves holding a delinquent property tax balance. When you find yourself in that boat, it can be crucial to look at all of your options as soon as possible so that you can avoid costly penalties and fees. That’s where SimplicE Tax Loans can help. Our stress-free property tax loan process makes it quick and easy for you to apply for a loan online on our website. You can even apply for a loan by SMS text or email!
Call or text us at (210) 939-2002 if you have any questions about property taxes, our online tax loans, or if you’d like to receive a free quote! We’re here to help you pay off your delinquent tax balance for your Texas property taxes.