Texas Comptroller Don Huffines told a tax law seminar that rising property taxes represent "the single biggest threat to the continued level of economic success" the state has experienced and called on local governments to cut rates.
Huffines said property taxes have become a major barrier for families trying to buy homes, and that local entities have room to reduce rates given recent revenue growth. Sales tax allocations distributed this month totaled $1.4 billion, a 13% increase over the prior year, according to the Comptroller's office.
"When sales tax collections are climbing that fast, local governments have room to bring property tax rates down," Huffines said. He added that "every dollar a city or county council doesn't spend is a dollar they don't have to tax away from a homeowner."
Huffines also announced a major review of his office's operations and the Taxpayer First Project, which he described as "the most significant reform of tax administration by a Texas Comptroller in decades." The initiative aims to ensure fair application of tax rules and improve the efficiency of tax administration.
Huffines said he intends to work with state leadership on tax relief during the next legislative session. The state has allocated billions toward reducing school district tax rates and expanding homestead exemptions in recent years.