THE MONEY THEY NEED? KSAT EXPLAINS IS NEXT. SO WHAT DOES IT MEAN? FINALLY,
A DEAL IN AUSTIN ON TEXAS
PROPERTY TAX. IT IS A
COMPROMISE ON THE PLANS PUT
FORTH BY THE HOUSE AND THE
SENATE WHICH ARE NOW IN THEIR
SECOND SPECIAL LEGISLATIVE
SESSION TO DEAL WITH THIS VERY
ISSUE. SO HERE’S WHAT’S IN THAT
DEAL. IT REDUCES YOUR SCHOOL
PROPERTY TAX RATE. IT INCREASES
THE HOMESTEAD EXEMPTION TO
$100,000 AND CREATES A PILOT
PROGRAM TO GIVE TAX CREDITS
ON PROPERTIES BUT DON’T HAVE
HOMESTEAD EXEMPTION.
STILL A BIG QUESTION HERE,
THOUGH, WITH ALL THAT, WHAT
DOES THIS DO TO SCHOOL FUNDING
AND COULD IT LOWER YOUR
PROPERTY TAXES NOW GOING TO
COST US MORE IN THE FUTURE?
THAT IS WHAT WE’RE LOOKING AT
IN THIS KSAT EXPLAINS. PLUS,
THE PROPOSALS THAT LAWMAKERS
WRESTLED WITH TO GET HERE.
>> OUR CITIZENS ARE NEEDING
HELP.
>> THERE ARE LONG-TERM
IMPLICATIONS TO THIS.
>> ELIMINATING THE SCHOOL IN
THE NO TAX IS THE
>> THERE’S JUST NOT ENOUGH
REVENUE TO DO IT. THE MONEY’S
GOT TO COME FROM SOMEWHERE.
LAWMAKERS HAVE BEEN STRUGGLING
FOR MONTHS TO FIND COMMON
GROUND ON PROPERTY TAX RELIEF.
>> THE SENATE HAD A PLAN.
THE HOUSE HAD A PLAN TO THE END
OF THE SESSION, PASSED WITH
NO SOLUTION ON THAT. BUT
GOVERNOR ABBOTT TOLD LAWMAKERS
TO GET IT DONE AND GO INTO
OVERTIME TO DO IT. THE FIRST
SPECIAL LEGISLATIVE SESSION
ENDED IN A STALEMATE. SO
LAWMAKERS WENT INTO DOUBLE
OVERTIME.
>> WRESTLING WITH 2 PLANS THAT
HAVE ONE GIANT SIMILARITY,
SOMETHING CALLED COMPRESSION.
THE BIGGEST PORTION OF YOUR
PROPERTY TAX BILL IS THE
INDEPENDENT SCHOOL DISTRICT IN
THEIR AREA. BOTH THE HOUSE AND
SENATE PROPOSALS INCLUDE A PLAN
TO COMPRESS THE PROPERTY TAX
RATE SET BY LOCAL SCHOOL
DISTRICTS. IF THAT RATE IS
LOWERED, YOU PAY LESS. BUT
PUBLIC SCHOOLS WILL STILL NEED
THE MONEY. SO LAWMAKERS IN BOTH
CHAMBERS WANT TO USE ROUGHLY
12 BILLION DOLLARS. THE STATE
HAS A SURPLUS TO MAKE UP THE
DIFFERENCE FOR SCHOOLS. THE
HOUSE PLAN CURRENTLY IS WHAT
THE GOVERNOR HAS ASKED FOR.
>> WHICH IS COMPRESSION.
ONLY IT WOULD LOWER PROPERTY
TAXES FOR ALL PROPERTY OWNERS.
BUT THE SENATE PLAN FAVORS
HOMEOWNERS BY INCREASING
HOMESTEAD EXEMPTIONS FROM
$40,000 TO 100,000 VOTERS WOULD
LATER HAVE TO APPROVE THAT.
IT’S THE PLANNED. LIEUTENANT
GOVERNOR DAN PATRICK SUPPORTS.
THIS WOULD NOT BE THE FIRST
TIME STATE LAWMAKERS HAVE
APPROVED COMPRESSING SCHOOL
PROPERTY TAX RATES THEY DID IN
2019.
>> THE STATE PAYS BILLIONS FOR
THAT COMPRESSION EVERY YEAR
THERE’S ALREADY 5 MILLION
DOLLARS PUT INTO THE BUDGET
FOR PROPERTY TAX RELIEF.
SO WHEN YOU HEAR THE NUMBER
17 BILLION DOLLARS FOR PROPERTY
TAX RELIEF.
>> REALLY? WHAT’S BEING DEBATED
IN AUSTIN WAS MORE LIKE 12 OR
13 BILLION DOLLARS. THAT’S A
ONE TIME.
THE REST WAS JUST 2 YEARS.
THAT’S JUST FOR 2 YEARS.
SO WHAT HAPPENS AT THE END OF
THOSE 10 YEARS? WHAT WAS DONE
AND THE YEAR 2023 WAS TO TAKE A
ONE-TIME MONEY.
>> TO BUY DOWN LOCAL PROPERTY
TAXES, THERE’S NOTHING TO KEEP
THEM FROM GOING OUT.
>> 2, 4 YEARS FROM NOW, THE
CONCEPT OF WHAT THEY’RE DOING,
IS IT BAD? IT’S JUST THAT THE
MATH DOESN’T WORK LONG. HEARD
JOSH ANDERSON ON THE DEPUTY
EXECUTIVE DIRECTOR OF EQUITY
CENTER. THE EQUITY CENTER
REPRESENTS MORE THAN 600 TEXAS
SCHOOL DISTRICTS IN THE
LEGISLATIVE PROCESS, ESPECIALLY
WHEN IT COMES TO FUNDING THAT
ROUGHLY 12 TO 13 BILLION TO
PAY FOR THIS PROPERTY TAX
RELIEF WOULD COME FROM THE
ROUGHLY 33 BILLION DOLLAR
SURPLUS. THE STATE HAS NOW
THAT.
>> SURPLUS IS COMPLETELY
UNPRECEDENTED BECAUSE IT IS
ONE-TIME MONEY BECAUSE IT’S NOT
A REGULAR CURRENT THING AND
THEY’RE APPLYING IT TO AN
ONGOING COST. SANDERSON SAYS
IT’S LIKE USING A ONE TIME
BONUS TO BUY A MORE EXPENSIVE
CAR. YOU GET THE EXTRA CASH
THE ONE TIME, BUT YOUR CAR
PAYMENTS COME AROUND EVERY
MONTH. FOR EVERYBODY WHO WORKS
ON THE BUDGET. YOU KNOW, THIS
IS GLARINGLY OBVIOUS. THERE’S
NO WAY TAKING MONEY OUT OF AN
ESSENCE, A SAVINGS ACCOUNT TO
PAY FOR ONGOING REDUCTION IN
TAXES IS GOING TO WORK. BUT
WHAT’S ALSO NOT WORKING ARE
CRIPPLING PROPERTY TAXES FOR
TEXAS. TEXAS IS ONE OF 7 STATES
THAT DOES NOT HAVE INCOME TAX.
THERE WAS A LIEUTENANT GOVERNOR
NAME BULLOCK IN THE 1990’S WHO
TRIED TO TALK ABOUT THE IDEA OF
HAVING AN INCOME TAX. BUT THAT
PROVED TO BE POLITICALLY
UNPOPULAR. THE.
>> THAT’S A CONSTITUTIONAL
AMENDMENT PROHIBITING A PERSON
FROM PACS AND TEXAS. THE PEOPLE
REFER TO AS THE BULLETIN.
AND THEN IN 2019.
>> THEY HAVE AMENDMENT. VOTERS
ACTUALLY STRENGTHEN THAT
CONSTITUTIONAL.
>> PROHIBITION WHICH MADE IT
EVEN HARDER TO BE AN INCOME TO
ACTUALLY I HAVE 2 THIRDS OF
VOTERS TO PASS AND IT’S NOT
GOING TO HAPPEN.
>> THE AMOUNT YOU PAY IN
PROPERTY TAXES IS BASED OFF OF
YOUR PROPERTY APPRAISAL, WHICH
IS DETERMINED BY THE LOCAL
APPRAISAL DISTRICT IN BEXAR
COUNTY, APPRAISAL VALUES AND
SHOT UP BY ROUGHLY 28% IN 2020
TO 15% IN 2023 PROPERTY TAXES
AND THE END OF THE DAY ARE
ACTUALLY LOCAL TAXES. THE REAL
ANSWER TO CONTROLLING THE
PROPERTY TAX BURDEN LIVE AT THE
LOCAL LEVEL ARE THE DIFFERENT
TAXING ENTITIES LISTED ON YOUR
PROPERTY TAX BILL SET THEIR OWN
TAX RATES ARE GOING TO
DETERMINE THE BUDGET. WHAT IS
IT THAT THE CITY OF SAN
ANTONIO, THE COUNTY OF BEER.
>> WANT TO ACCOMPLISH THIS
YEAR? WHAT YOU’RE GOING TO TAKE
TO GET THERE. THE STATE PUT A
LIMIT ON HOW MUCH THOSE
ENTITIES CAN INCREASE THEIR
RATE EACH YEAR. NO MORE THAN
3 AND A HALF PERCENT. BUT THAT
PERCENTAGE CAN BE BANKED AND 2.
>> YOU CAN GO BUT 3 AND A HALF
PERCENT. IF YOU DON’T SAY SPENT
2 AND A HALF PERCENT LAST YEAR,
THAT LIMIT DOES NOT APPLY TO
THE HOSPITAL DISTRICT OR ALAMO
COLLEGES DISTRICT. THEY CAN
INCREASE RATES BY AS MUCH AS
8%. BUT SOME LOCAL ENTITIES ARE
MAKING MOVES TO TRY TO LESSEN
THE BURDEN. ALAMO COLLEGES
APPROVED A NEW HOMESTEAD
EXCEPTION OF ONE PERCENT OR A
MINIMUM OF $5,000. THE CITY
OF SAN ANTONIO JUST DOUBLED
ITS HOMESTEAD EXEMPTION FROM
10% TO 20%. IF WE DIDN’T HAVE
THE PROPERTY TAX GOVERNMENT
WOULD NOT BE ABLE TO FUNCTION
AND IT’S MUCH THE SAME FOR
PUBLIC SCHOOLS. GOVERNOR ABBOTT
HAS SUGGESTED PUSHING PROPERTY
TAX RELIEF EVEN FURTHER MIGHT
ELIMINATING THE MAIN PORTION OF
SCHOOL PROPERTY TAX RATES
ALTOGETHER. IT’S CALLED THE
MAINTENANCE AND OPERATIONS TAX
OR IT’S WHAT PACE FOR
DAY-TO-DAY EXPENSES LIKE
TEACHER, SALARIES, UTILITIES
AND MAINTENANCE. THE TEXAS
PUBLIC POLICY FOUNDATION, A
CONSERVATIVE THINK TANK HAS
BEEN TALKING ABOUT A PLAN TO
WIPE OUT PROPERTY TAXES FOR
YEARS. AND NOW GOVERNOR ABBOTT
HAS ENDORSED THE PLAN CALLS FOR
THE STATE TO CONTINUE
COMPRESSING PROPERTY TAX RATES
OVER 10 YEARS.
>> AND RESTRICT GOVERNMENT
SPENDING AND GROWTH TO CREATE
FUTURE SURPLUSES. LIEUTENANT
GOVERNOR DAN PATRICK HAS CALLED
IT. AND THAT’S A FANTASY AT ONE
THAT WOULD REQUIRE A HUGE JUMP
IN SALES TAX. EVENTUALLY WE’RE
GOING TO GET TO A POINT TO
WHERE YOU CAN PAY FOR THIS,
>> BECAUSE THE STATE JUST
DOESN’T HAVE THE MONEY TO DO
IT. LONG TERM. THE DOG IS GOING
TO CATCH THIS CAR.
>> REPRESENTATIVES WITH THE
TEXAS PUBLIC POLICY FOUNDATION
DECLINED OUR REQUEST FOR AN
INTERVIEW FOR THIS EXPLAINS.
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