LUFKIN, Texas — We’re just one month away from the November elections and the biggest property tax reduction in the state’s history is on the ballot.
From groceries to clothes to cars, inflation is driving up the cost of everything -- and property values are skyrocketing too.
"In the last four or five years, property valuations in larger cities have doubled in many cases. So those property taxes have gone up commensurate with those valuations," senior fellow for Texas Public Policy Rob Bordelon said.
To ease the tax burden, Texas lawmakers are proposing a $1.8 billion property tax cut.
"The property taxes for the average homeowner in Texas will go down significantly, partly because the legislature has decided to compress that at the rate that school property taxes will be imposed at the local level," Bordelon said.
If voters approve the measure, the average homeowner will save between $1,200 to $1,400 a year. The proposal would also increase the homestead exemption by $60,000, and put a cap on appraisals for non-homestead properties. It could translate to big savings for renters too.
"Economic realities are that if you reduce the cost burden on landlords, they will pass some of those savings along to their renters. And we do believe that will happen," Bordelon said.
Ultimately, the level of tax savings would depend on whether your local school district decides to raise the property tax rate. Voters will have the final say during the Nov. 7 election.