On December 27, Texas Governor Greg Abbott celebrated the successful implementation of what he called the “largest property tax cut in Texas history.” His replies, however, were full of Texans far from happy with the measure.
Widespread support
Abbott’s bill, the Property Tax Relief Act, received widespread support from Texas voters in a ballot measure on November 7. However, many residents apparently feel the package doesn’t go far enough.
Bad joke
In response to Abbott, one X user called the tax cut a “joke,” saying that their taxes had recently increased by “another $800.”
Criticism rolls in
“You may have given us a bigger deduction,” another user wrote, “but it still didn’t cut taxes since our values were significantly increased prior to the increased homestead exemption.”
Exemptions
The homestead exemption, which refers to how much a homeowner can remove from the value of their primary residence before it is taxed, was increased from $40,000 to $100,000.
Harsh burden
Texas has a reputation for being relatively tax-light, thanks to a lack of income tax. However, property taxes in the state are the sixth highest in the country.
Tax burden
When combined with the state’s consumption tax, which is also relatively high, Texas actually has a “higher effective state and local tax rate for a median U.S. household” than California, according to Fortune.
Different burdens
“When people are like, ‘Oh California is so much more expensive than Texas,’ that’s the top income tax rate. That’s on people earning over $1 million,” explained Richard Auxier, a tax policy expert.
Note of caution
That being said, tax burdens are difficult to measure, and property tax is “especially complicated to calculate,” per Fortune. Property taxes can vary depending on when the homeowner purchased their residence, for example.
Potential savings
The office of Paul Bettencourt, a Republican state senator in Houston, estimated that Abbott’s bill would lead to about $100 a month in savings for the average Texas homeowner.
Unreliable figures
However, on December 30 Aaron Layman, a real estate broker, argued on X that estimates of property taxes often “understate the property tax burden in Texas.” “Try finding a home in any Texas metro area with a property tax burden under $5,000/year and you will understand what I mean.”
Disgruntled commenters
That underestimation might be why so many commenters believed that Abbott’s bill didn’t go far enough to reduce the property tax burden on Texas homeowners. One complained that Abbott was “still taxing homeowners on unrealized gains, which is absolutely disgusting.”
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