Texas Senate Bill 2 Pits Property Tax Relief Against Funding For City Services

Apr 4, 2017

State lawmakers are debating whether to cap the amount of property taxes that can be collected by Texas municipalities.

Those in favor say Senate Bill 2 would provide relief for hard-pressed homeowners and small-business owners.  Local leaders say this would choke off dollars needed to pay for police, fire, emergency and other city services.

As reported by Texas Public Radio's Ryan Poppe: 

"As property values increase, the tax rate goes down and vice versa.  Once that rate reaches more than 8 percent, voters can petition their local taxing entity to lower that rate back down to 8 percent. [Senator] Bettencourt’s bill would keep the local tax rate at 5 percent or lower."

What would a statewide cap on property taxes mean for cities and counties across Texas? If enacted, how would this legislation affect essential services funded by local property taxes?