Former Texas senator and gubernatorial challenger Don Huffines’ Huffines Liberty Foundation is releasing a report today detailing alleged issues with the property tax method in Texas and calling for an overhaul of the system.
“To put it bluntly, property taxes are immoral,” Huffines argued to The Dallas Express.
“Any policy that keeps Texans from owning their own home, while at the same time forcing renters and businesses to carry a burden from which they get no relief, should not pass. It should not even be considered,” he continued.
“I spend my time and treasure advocating for broad property tax relief where every citizen is a winner and treated equally,” Huffines said. “Texans have options, let’s explore them.”
Based on an analysis of data from the Texas Comptroller’s office, the Huffines Liberty Foundation study claims the total amount of property taxes collected from Texas citizens increased by 12.17% from 2021 to 2022 despite the legal limits placed on rate increases.
“It turns out … that the Legislature’s limits on property tax growth leak like a sieve and allow property taxes to grow much faster than anticipated,” the report claims.
The reason for this, according to the report, is a complicated and obscure tax system designed to hide such increases from the voters.
“One of the problems with unlimited government is how its complexity masks the truth from voters and taxpayers,” the report says. “One example of this is Texas property taxes.”
“Texas politicians for years have been bragging about what a great job they have done providing property tax relief for Texans,” it continues, suggesting that prior attempts at property tax relief “failed … spectacularly.”
From 1996 to 2018, the study claims that the average amount of property tax collections increased by an average rate of 6.1%. However, since 2018 that rate has spiked to 6.77%.
From 2021 to 2022 alone, the total amount of property tax collections increased by 12.17%, according to the report.
The rapid rise in collections comes despite limits placed by the Legislature on rate increases in 2019, which cap rate hikes at 3.5% for most taxing entities, 5% for school districts, and 8% for special taxing units.
Lawmakers have made several attempts to reduce the burden on taxpayers by attempting to “buy down” increases and expanding mitigating factors such as homestead exemptions.
According to a study by the Texas Taxpayers and Research Association, efforts by the Texas Legislature in 2019 prevented taxpayers from paying an additional $6 billion in property taxes in 2021.
Nevertheless, the amount of money collected each year by property taxes continues to climb, impacting Texans across the state.
Pointing to several mechanisms that allow the property tax rates to climb higher than the typical limits, the report identifies how the “unused increment rate” enables tax districts to raise rates by as much as 10.5% without voter approval.
According to the Comptroller’s office, most taxing entities can store up or “bank” the amount of yearly rate increase they are allowed without voter approval for up to three years and then adopt the total increase all at once.
For example, typically, Dallas County would have to seek explicit voter approval to raise property taxes by any more than 3.5%, but if it chose not to, then it could increase rates by 7% the following year without a popular vote.
Similarly, if it waited another year with no increase, then rates could jump as much as 10.5% without voters having a say in the matter.
The Huffines Liberty Foundation report concludes by calling on the Texas Legislature to provide meaningful property tax reform that removes loopholes and actually reduces the amount collected from citizens.
“The Texas Legislature currently has the largest budget surplus in state history at about $32 billion,” the report notes. “Yet they have said they would use only about $10 billion for property tax relief this session.”
“Unless the Legislature at least triples the amount of property tax relief … the results this year will mirror what we have seen before; more spending on education with only minor and temporary property tax relief,” the report claims.
The study concludes by arguing that “the Legislature must use all of the current $32 billion surplus to provide property tax relief and change the current dysfunctional property tax system.”
Other factors contributing to the increase in total property tax collections include “skyrocketing” property appraisals, inflation, and the influx of people moving to Texas, as reported by The Dallas Express. The Huffines Liberty Foundation said they did not factor in these variables when looking at the increase.
Simple the “unused increment rate” is the leak / flaw in the system. Repeal and BAN it ASAP an the entire issue will be resolved.
What happened to returning the money to the taxpayers? Looks like another false promise by Abbott.
I moved away from Texas but I plan to move back because all my family lives there. As a current homeowner in Florida I am besieged by outrageous across-the-board high taxes. I would find it maddening to move back to Texas and be just as financially abused by sky-high taxes. According to Huffines, the state allows taxing entities to hoard tax rates by no more than 3.5%, but as the article states they can hold that amount and then increase it by the same amount for up to 3 years! That’s outrageous. I am sure if that point had been made very clear in the original legislation it would NOT have passed. This is the state taking EXTREME advantage of Texas homeowners and the voters MUST hold Texas lawmakers accountable, otherwise don’t complain.
The cap law provides that if you qualify, the value on which your taxes will be calculated (called your appraised value) cannot exceed the lesser of: This year’s market value; or. Last year’s appraised value, plus 10% plus the value added by any new improvements made during the preceding year. But if you dont Protest then you will pay more.
The tax rate is only one part of the equation. Valuations are almost an uncapped variable that are randomly applied and viscously defended by the Appraisal District.
Infuriating; this is blatant lying and legalized theft
Don Huffine and now Huffines Liberty Foundation. If he was so applauded at these taxes why didn’t he do something or something.
He was a Texas Senator and gubernatorial challenger. Never said a word about helping tax payers. He knew what Governor Abbott, LT. Governor Patrick, Attorney General Paxton and Comptroller’s have been doing for years.
When tax payers pay off their homes their taxes never go down unless it’s a Senior. If the original owners die and their children get the home, tax are doubled again. The Governor and his gang give the money (over taxing) to his buddies. They don’t use it on the damn border wall. 32 billion only use 10 billion, what are they going to do with the 22 billion. Republican run the state but Democrats do nothing just sit on their hands. Where is Huffine getting his money for his foundation?
Keep up Anna. He had billboards about eliminating property taxes during his run in the primary for governor. And as Senator, he’s the reason you no longer get ticketed by a bureaucratic camera at stop lights. He’s one person, and last I checked, we not living in a dictatorship, yet. If the people don’t stay informed, then it’s not his fault, it’s those that did not stay informed.
Jim I stay informed I don’t mind some cameras in the neighborhood’s. The young man in Memphis was beaten to death by some policemen. If that camera in that area wasn’t there they would have gone free.
I have a camera in my home so why wouldn’t I not want one on these streets. I never saw Mr. Huffine’s pictures in the southern parts of DFW.. once up on a time, politicians would come to the neighborhoods. Didn’t matter what color or political party they affiliated with.
They came with their agenda. Now the parties have segregated where they go. That’s why we can’t get anything done.
Don Huffines was an independently wealthy business person before he ran for office. And while in office as a State Senator, he took no salary and no expenses from the Texas Treasury–unlike any other State Senator before or after his service. You can check that out.
I think that he is now funding the foundation with his own money and that of other voluntary contributors.
Unlike our RINO Governor who hid in his basement raising money from those who still benefit from his actions or lack of actions as the Governor, Huffines ran a forthright campaign with specific solutions for Texas problems.
Sadly, Huffines was not elected Governor of Texas.
Sadly he didn’t speak out. Never came to the minority community. He would have won. Maybe not because we have minorities who take money underneath the tables, then smile in their own people’s faces!
Had to read all the way to the end to find:
“Other factors contributing to the increase in total property tax collections include “skyrocketing” property appraisals, inflation, and the influx of people moving to Texas, as reported by The Dallas Express. The Huffines Liberty Foundation said they did not factor in these variables when looking at the increase.”
Shouldn’t this have been featured more prominently? Perhaps some questions for Huffines about these factors and why HIS foundation did not take these into account might have been in order.
Exactly. Puff piece.
Several years ago, Mesquite had some bond issue that raised the taxes for 2 years. When that time was up, they decided they liked that rate so much that they pushed for a vote to keep it at that rate, telling us that they could hire more police and fireman. And people were dumb enough to vote for it. And this was during a time when the county was drastically raising property values, which means the city was going to bring in tons more money because of that. But, oh, that wasn’t enough. Hiring ample police and fireman should be the first thing taken from the budget. But Mesquite was such a safe city for many years, I think they were not increasing the police-to-citizen ratio for many years. And then they got caught with their pants down when crime started increasing exponentially. I don’t know the wherewithal the city is spending our money, but anytime I see that Taj Mahal they call a police station, I have a pretty good idea.
This article talks about COLLECTIONS increasing. This does not indicate that any individual taxpayer’s taxes are increasing. More property improvements and building would cause the total collections to increase.
Part of the problem is the exemptions allowed before taxation. They are FIXED in value at a given amount and never change. IF COLA is 12% then the exemption should be raised 12% as well. This would be FROM THE DATE OF INCEPTION of the exemption.
As an example in Florida the Homestead exemption was $5,000 in the 1930’s (meaning that almost all homeowners paid NO PROPERTY TAX for a homesteaded property. It was never raised until 1980 and stall stands at $25,000 today. That $25,000 today is the equivalent of $100,000. The State allows an increase of property tax at 3% maximum annually except for special assessments. This means that Floridians are taxed at a a difference of nearly $200,000 in assessed value over the intended taxation.
Texas operates much the same way, however, in FL at time of sale every home’s sale price is PUBLIC REORD. In TX this is untrue. Therefore no one can technically argue taxable value vs assessed value as there are no legal comparatives that the public can use.
This is a very important article!!
“To put it bluntly, property taxes are immoral.
Any policy that keeps Texans from owning their own home, while at the same time forcing renters and businesses to carry a burden from which they get no relief, should not pass. It should not even be considered,” said Don Huffines.
So true. So true.
For those who strain with criticism, then you can voluntarily pay more property tax. And you will never ever truly own your home. You are “renting” it from the government.
People need to voice their opposition to property taxes (legalized theft of what you own.)
Don Huffines is raising his voice against this warped system of extorted thievery.
If you do not raise your voice against it, then the extortion will continue.
Opinion: Texas Can Fix the Border Crisis By Don Huffines
https://dallasexpress.com/opinion/opinion-texas-can-fix-the-border-crisis/