Huffines Liberty Foundation: ‘Florida serves as one example of how the Texas Legislature could reduce property taxes’

Texas has the nation's sixth highest property tax rate on owner-occupied homes, according to a new research paper written by the Huffines Liberty Foundation.

The study analyzed the difference in property tax rates between Texas and comparable states, such as Florida.

"Florida is one example of how the Texas Legislature could reduce property taxes," the report said. "It manages to keep property taxes lower, even without an income tax, because it practices fiscal restraint."

Property taxes in Texas have become an elevated issue with booming metropolitan economies driving home values up, leading to a $27 billion surplus that some believe should be used to cut property taxes. Newly re-elected Gov. Greg Abbott has supported the use of surplus funds to alleviate property taxes stating in a recent tweet, “We will use much of it to deliver the largest property tax cut in Texas history.”

Texas’ median effective residential property tax rate in 2022 is 1.81%, according to TaxRates.org. The median effective rate measures the percent of a home’s market value that is collected by taxing authorities. Any tax exemptions on the property are figured into the rate.

According to TaxRate.org, Harris County's property tax rate is 28% higher than the state average at 2.31% of home value, which is 2.38 times higher than Florida’s median rate. The real dollar cost in property taxes for Harris County was $6,664.

Huffines Liberty Foundation’s paper "Texas Property Taxes: A State to State Comparison" made the argument that Florida and Texas are similar in population economic growth and neither have income tax. The average property tax for the largest 10 counties in Florida is 1.98% while Texas’ top 10 average 2.42%. The top five county average difference margin is similar with Florida's at 2.05% and Texas' at 2.50%.

Texas’ record $27 billion surplus derives from the state’s recapture system designed to fund schools with lower income and smaller populations that need financial assistance. Texas School Coalition reports that recapture now removes $3 billion per year from Texas school districts, tripled from 10 years ago. The coalition reported that when the state takes money out of local communities through "Robin Hood" recapture, those tax dollars do not necessarily go to lower-income school districts but are used to balance the budget.