During a meeting last week attended by IBAT and the Texas Association of Business, staff from Governor Greg Abbott’s office unveiled early thoughts on overhauling the Texas property tax system.
The proposal included a constitutional amendment that would eliminate the school district portion of property taxes. An alternative for school district funding was not included in the proposal.
In other parts of the plan, the Governor’s office proposed:
- Limiting local government spending, including imposing a debt limit and prohibiting deficit spending.
- Requiring two-thirds voter approval for tax rate elections and new bond authorizations.
- Enabling tax rollback elections if 15 percent of registered voters in a local area sign a petition.
- Requiring that properties be appraised only once every five years.
- Lowering the homestead appraisal cap from 10 percent to 3 percent.
- Extending the appraisal cap to all properties.
It is important to note that this process is still in its early stages. The Legislature will likely bring forward its own ideas on property tax reform, along with the Lieutenant Governor.
IBAT’s legislative committee will continue to monitor and review progress on this proposal throughout the remainder of 2026.
