Ep. 60 - James Quintero

This episode explores the complexities of property taxes in Texas, specifically focusing on how recent tax relief measures have been impacted by local government actions. Against the backdrop of an $18 billion tax relief package in 2023, which initially lowered tax bills, the discussion reveals how aggressive rate hikes, bond measures, and non-voter-approved debt instruments quickly eroded these savings. More significantly, the analysis highlights a critical flaw in the existing 3.5% revenue cap, which limits the amount of revenue a government can increase, not the tax burden on individuals. For instance, the Austin Independent School District raised taxes by $700 per average homeowner despite voter approval, illustrating how the system allows for significant tax increases even with a cap in place. The conversation further delves into the misuse of disaster declarations and certificates of obligation to circumvent tax limitations, leading to a two-tiered system where some jurisdictions can increase revenue by up to 8%. This situation has prompted proposals for reform, including a two-thirds approval requirement for tax increases and bonds, and greater transparency regarding the cost of bond measures to individual taxpayers. What this means for Texas is a need for comprehensive reform to prevent the erosion of state-level tax relief efforts and ensure greater fiscal responsibility at the local level.