Are Texas property taxes out of whack?
If you are a property owner in Texas, you have likely noticed that rising property appraisals, combined with property taxes, can sometimes place a strain on the budgets of homeowners. Texas relies on local property taxes, more so than almost every other state, to pay for public education and other services. Could it be that the Texas tax system is out of whack? Texas is one of five states without an individual or corporate income tax. Most states throughout the nation derive approximately 40 percent of their revenue from income taxes, a third from sales taxes, and the remainder from taxes on items such as business licenses and gasoline. Therefore, Texas has a high sales tax rate (compared to the rest of the country) and significantly higher property taxes. Fortunately, Texas also has significantly lower prices for homes than most other states. Still, the Texas Association of Realtors has come up with a ten-point plan for reforming the appraisal system, and is actively working with the
