Property Taxes & Government Spending in Texas

Property taxes affect homeowners, renters, businesses, and local communities throughout Texas and Precinct 19 supports ending this practice in the State of Texas. Understanding how the system works—and who makes the decisions—is an important first step toward meaningful reform.

This page brings together official records, public data, and policy research to help residents understand property taxes, government spending, and proposals to provide taxpayers with relief.

How the Texas Property Tax System Works

Texas does not levy a state property tax. Instead, property taxes are imposed by local taxing units, which may include school districts, cities, counties, community colleges, and special districts.

The amount a property owner owes generally depends on the property's taxable value, applicable exemptions, and the tax rates adopted by the taxing units that serve the property. Appraisal districts determine property values, while local taxing units adopt their own tax rates and budgets.

These distinctions matter. An increase in a property's appraised value does not automatically mean that every taxing unit will collect proportionately more revenue, and a lower tax rate does not necessarily mean a lower tax bill.

Start with these official resources:

• Texas Comptroller: Property Tax System Basics
• Texas Comptroller: Property Tax Rates
• Texas Constitution, Article VIII

Why Property Tax Reform Matters

Property taxes can place a significant burden on people living on fixed incomes, families trying to purchase homes, and businesses planning for long-term expenses. Even when property values rise, household income may not rise at the same rate.

Reform proposals differ in their approach. Some seek to limit tax-rate increases or local revenue growth. Others emphasize spending restraint, expanded exemptions, greater transparency, or using state revenue to reduce local school district property taxes.

Each proposal deserves a careful examination of its benefits, costs, and long-term consequences.

Can Texas Eliminate Property Taxes?

Eliminating local property taxes is a more complex question than reducing them. Local governments and school districts rely on property-tax revenue to fund ongoing services. Any proposal to eliminate or substantially replace that revenue needs a credible explanation of how those services would be financed in the future.

Questions residents should ask include:

• What alternative revenue source would replace the lost property-tax revenue?
• Would the replacement shift the burden to sales taxes or other taxes?
• How would the proposal affect homeowners, renters, and businesses differently?
• Would local governments have incentives to control spending?
• How would public schools, law enforcement, roads, and emergency services be funded?

Texas's constitutional prohibition on a state-level ad valorem property tax should not be confused with a prohibition on local property taxes. Local property taxation is authorized under Texas law.

Follow the Money

Good tax policy begins with understanding government revenue and spending. Residents can review county budgets, revenue sources, expenditures, debt, and other financial information to better understand how public funds are used.

Useful research includes:

• Collin County Open Government — county financial information, budgets, and public data.
• Texas Public Policy Foundation: Property Tax Reform — policy proposals and arguments for reform.
• Texas Public Policy Foundation: Lower Taxes, Better Texas — a policy perspective on reducing the tax burden.
• Texas Policy Research: How Texas Can Replace Property Taxes — a proposal for replacing property-tax revenue.
• Tax Foundation: Property Taxes by State and County — comparative property-tax data.
• Tax Foundation: Property Tax Relief and Reform Options — an overview of approaches to tax reform.

Policy organizations offer useful analysis, but their recommendations should be distinguished from official financial records and statutory requirements.

What Residents Can Do

Residents can take several practical steps to become more informed and involved:

1. Review the tax rates and budgets of the taxing units that serve their property.
2. Learn how property values, exemptions, and tax rates affect their tax bills.
3. Attend public budget hearings and tax-rate hearings.
4. Ask elected officials to explain spending increases and the alternatives considered.
5. Evaluate reform proposals based on both the relief they promise and how they would be funded.

PCT19 will continue to organize local information, official documents, and policy research to help residents evaluate these questions.

The goal is informed accountability: understand the numbers, examine the proposals, and hold decision-makers responsible for the choices they make.