What does the Budget Surplus in Texas Mean for Property Taxes
Greg Abbott, the governor of Texas, recently made the announcement that the state is likely to have a budget surplus in the year 2023 as a result of an increase in the amount of taxes received and reductions in spending. This piece of information begs the question: what are they going to do with all of this extra money?
Abbott suggested allocating part of the monies to reduce property taxes as a way to help provide relief from the burden of taxation. To be more precise, he intends to spend around $2.6 billion of the surplus money to reduce the property taxes on residential homes by at least five percent and the taxes on local businesses by seven percent.
Many Texans who are hoping for tax relief have expressed their excitement about this idea; nevertheless, there are still some uncertainties regarding how this might operate in practice. How much cash will be saved by each property owner? It is dependent on the individual's total tax burden; if it is higher than the average for the state, then the individual will save more money as a result of this proposal than those who pay lesser amounts of tax.
Some people are concerned about the possible impact that lowering property taxes could have on public school funding and other public services, given that the majority of local budgets are primarily dependent on revenue collected from property and other types of taxes. Concerns were also voiced by the Texas State Teachers Association (TSTA) on the possibility of a decrease in school financing being made up for by funds coming from other sources.
Because Governor Abbott intends to discuss this matter in his upcoming speech on the state of the state, which will take place the following month, we should soon have more information regarding how precisely he intends to use the additional funds and how it will impact both taxpayers and school districts. In the meantime, make sure to check back here for more frequent updates!