It’s no wonder.
Texas property taxes are pretty dang high, ranking at No. 7 in the country, according to the financial tech company SmartAsset. (A report from the Tax Foundation puts us at No. 6.) The Lone Star State’s average effective property tax rate is around 1.6%, while the national average rests at just 0.99%.
Dallas County has it even worse. Here, homeowners pay “significantly higher than the national average,” SmartAsset reports. The county has an effective rate of 2.22%, with the average homeowner forking over a little more than $4,300 in property taxes per year.
County governments in Texas are primarily funded via property taxes, which also go toward schools, law enforcement and water systems.
Even though property taxes aid many essential services, paying them isn’t exactly fun. Luckily, homeowners in Dallas and across the state may soon get some help from Texas lawmakers.
Property Tax Deal
Throughout the 2023 legislative session(s), House Speaker Dade Phelan and Lt. Gov. Dan Patrick locked horns over how to best pursue slashing property taxes. On June 1, The Texas Tribune reported that the lower chamber's plan was friendlier toward business than its Senate counterpart. The upper chamber, meanwhile, was more homed in on helping homeowners.
But on Monday, Patrick and Phelan announced an agreement on a proposal they say will provide “the biggest property tax cut in Texas history.”
A vote on the $18 billion tax-cut legislation is expected later this week.
Some state GOP lawmakers are apparently pleased with the news.
“I'm looking forward to finalizing the largest property tax cut in Texas history for homeowners and businesses this week!” tweeted McKinney state Sen. Angela Paxton (spouse of impeached Attorney General Ken Paxton).
Gov. Greg Abbott tweeted that he intends to sign the legislation.
I look forward to signing into law the largest property tax cut in Texas history.
— Greg Abbott (@GregAbbott_TX) July 10, 2023
My full statement on the announced deal between the Texas House and Texas Senate below. pic.twitter.com/9IAepfXWca
Critics of Property Tax Deal
Not every Republican is jazzed about the likely soon-to-be cut.One-time GOP gubernatorial candidate Don Huffines — who’s also a former Dallas state senator — blasted the proposal as an “embarrassment and disaster” in a tweet on Monday.
“This plan is an obvious move to divide Texans with carve-outs so that we fight amongst ourselves rather than fight together for school property tax elimination,” the North Texas firebrand tweeted in part. “Any legislator that votes to keep the school property tax burden on Texans is ensuring that Texans never own their property.”
The new property tax “deal” between Patrick and Phelan is an embarrassment and disaster. It will do more to turn us into New Jersey than any other policy #txlege could have dreamed up.
— Don Huffines (@DonHuffines) July 10, 2023
Government should never pick winners and losers. That is what the socialists do. They divide… https://t.co/TugoUckAUv
Republicans lawmakers argued for months over how to approach such cuts, but renters were left out of the conversation. So, House Democrats — led by Dallas state Rep. John Bryant — proposed a $20.9 billion tax relief plan that includes folks who don’t own their home.
Aside from helping Texans with property taxes, it would also supply public school teachers with a permanent boost in pay.
But Bryant told the Observer that rental households and public education weren't included in the Patrick-Phelan proposal. The Democrats sought to offer a homestead exemption of up to $200,000, but the GOP plan keeps it at $100,000.
Asked whether the deal will ultimately help Texans, he replied: "I think it will cause people to be angry at the Legislature, that they didn't really address the problem of people being taxed out of their homes. Because they gave away so much money to ... corporations that are not faced with the same pressure that homeowners and renters are faced with."
Mayor Eric Johnson’s Take
On Monday, Dallas Mayor Eric Johnson assigned new members to the Ad Hoc Committee on Legislative Affairs. Council member Cara Mendelsohn will serve as chair of the committee, which will include Mayor Pro Tem Tennell Atkins and Council members Zarin Gracey, Omar Narvaez and Kathy Stewart.Johnson is encouraging committee members to push for the Patrick-Phelan tax cut's passage, including by giving testimony at the state Capitol.
Johnson told the Observer via email that he will “advocate fiercely in our city’s upcoming budget cycle to lower the city property tax rate.
“One of my top three goals is to ensure Dallas becomes the major city with the lowest property tax rate in the North Texas region,” he continued. “Without meaningful property tax relief, Dallas residents may choose or be forced to forgo the opportunity to live and work in our great city.”
The mayor made headlines over the past several days thanks to his own effort to seek out property tax relief.
He and his wife are hoping to lower their tax bill of nearly $33,000, according to The Dallas Morning News. The couple’s East Dallas home in the White Rock Lake area received a sky-high appraisal this year.
Johnson also retweeted a Lake Highlands Advocate piece on Monday headlined, “Opinion: The mayor is protesting his home value, and you should, too.”
The article’s author notes that she writes for the Lake Highlands Advocate on the side. She adds: “Appealing property taxes is the full-time family business,” one that counts Johnson as a client and filed his appeal.
If you believe DCAD has overvalued your home, you’d be wise to appeal as @Johnson4Dallas and thousands of Dallas County homeowners have. Tell DCAD officials something about your property they don’t already know. Your efforts could result in tax savings. https://t.co/CEZQva4S9X
— Lake Highlands Advocate (@Advocate_LH) July 10, 2023
Johnson’s roughly 5,000-square-foot home has seen its appraised value spike more than 540% over the past decade, according to the Advocate: “from $280,000 in 2013 to $1.8 million this year.” Ouch.
“If you believe [the Dallas County Appraisal District] has overvalued your home, you’d be wise to exercise your rights to an appeal as Mayor Johnson and thousands of Dallas County homeowners have,” the article continues. “Here’s a trade secret: Tell DCAD officials something about your property they don’t already know. Your efforts could result in tax savings.”
