Texas has been a dominant force in the national economy, and the states’ housing affordability has been a contributing factor. But the increase in property taxes threatens this affordability. Texas REALTORS® are on the front lines to defend against increasing property taxes, attempts to tax real estate purchases, real estate transfer fees, and other efforts to add costs to buying, selling, or owning property.
According to the Houston Chronicle, “… the lack of affordable housing is being viewed as a crisis that affects Americans of all ages, races and income groups.”
The Texas Association of REALTORS® supports various measures to ensure a more transparent and honest conversation occurs at the local level. These measures include supporting:
- The reduction of the rollback rate from 8% to a lower percent, with support contingent on ensuring the new rollback rate is not an automatic property tax increase for property owners;
- An automatic tax ratification election if the rollback rate is exceeded;
- Updating the calculation of effective and rollback rates to include state-funded matters such as state-paid road maintenance;
- Requiring all taxing entities’ effective and rollback tax rate worksheets to be filed with the State Comptroller and requiring a certain percent of worksheets to be audited;
- Enhancing property tax notices (e.g. eliminate last year’s tax rate from notice, as including last year’s rate leads to confusion and inaccurate comparisons of tax rates); and
- Simplifying the calculations of effective and rollback tax rates.