Texas House Rejects SB 10: Time for Real Property Tax Relief

Momentum is growing to eliminate property taxes—and Texans are asking, why not?

Hello Friends!

The Texas House delivered a win for taxpayers today by rejecting the SB 10 conference report. Lawmakers rightly balked at a bill that excluded local governments with fewer than 75,000 residents from the new 2.5 percent voter-approval tax rate, leaving millions of Texans unprotected. More importantly, SB 10 failed to cut property taxes—it merely slowed their growth, the same kind of budget gimmickry Washington calls “spending cuts.”

Texans know better. We don’t need half-measures that nibble at the edges. We need a real solution: eliminating property taxes once and for all.

The Problem Isn’t Revenue. It’s Spending.

Over the last two budget cycles, the Texas state budget has grown by nearly 40 percent—roughly twice the rate of population growth plus inflation. Under a sustainable budget, growth should have been capped at that metric. Instead, spending surged, eating up surpluses that could have been used for tax relief.

At the local level, it’s no better. Local government spending continues to skyrocket, wiping out much of the state’s efforts to reduce school property taxes. For example, local government debt per capita in Texas is $8,627—among the highest in the nation, trailing only California and New York.

The result: Texans pay one of the highest effective property tax rates in the country. At 1.36 percent of owner-occupied housing value, Texas ranks 7th-highest according to the Tax Foundation. Property tax bills have ballooned despite increases to the homestead exemption and rate compression. Why? Because unchecked local spending keeps driving levies higher.

The Burden on Families

Property taxes are more than just numbers on a bill. They are a perpetual rent to government, a tax on unrealized capital gains that erodes the very idea of homeownership. Texans never truly own their homes—they rent them from government for life.

Families are being squeezed. Inflation remains above the Federal Reserve’s target, wages are being eroded, and housing affordability is declining. Adding to the burden, local governments continue to push for new spending, debt issuances, and taxpayer-funded lobbying campaigns to preserve their power.

This is why taxpayers are restless. The fight is not just about slowing tax increases—it’s about restoring economic freedom and ensuring Texans can keep more of what they earn.

Why SB 10 Fell Short

SB 10 aimed to lower the voter-approval rate multiplier from 3.5 percent to 2.5 percent, but only for larger jurisdictions. That exclusion left vast portions of Texas unprotected, particularly fast-growing mid-sized counties and cities where the property tax squeeze is most acute.

Worse, SB 10 failed to address the root cause: spending. Without hard caps on local budgets, governments will continue to grow by exploiting loopholes, raising fees, and issuing debt. Limiting the rate of increase without curbing spending is like patching a leaking roof without fixing the hole.

Texans deserve better than symbolic reforms.

The Momentum Is Growing

The rejection of SB 10 shows momentum is shifting toward real reform. Texans are demanding more than incremental tweaks.

Florida Gov. Ron DeSantis recently announced he would put the question of abolishing property taxes before Florida voters. He put it plainly: “If you own your home, to truly own it, you have to own it free and clear of the government. You shouldn’t have to pay rent to the government.”

If Florida is moving toward bold reform, why shouldn’t Texas? We have every advantage: no personal income tax, a strong workforce, abundant energy, and relatively lower overall state spending than many other large states (but still way too high). But those advantages are undermined by sky-high property taxes and regulatory bloat.

Meanwhile, states like California and New York continue to hemorrhage people because of big-government models that Texas risks replicating if spending isn’t restrained. Florida, our closest competitor, has also shown that it’s possible to pursue aggressive tax reform while maintaining strong economic growth.

A Path Forward

Texans don’t just want relief. They want ownership. Here’s the principled, practical path forward:

• Spending restraint first. Enact strict state and local spending limits tied to less than population growth plus inflation. That’s a good measure of the maximum growth taxpayers can afford. Past excesses justify spending growth that is even slower—or cut.

• Surplus buy-down. Dedicate state surpluses to eliminate school district M&O property taxes until they reach zero. Dedicate local surpluses to eliminate their property taxes.

• Sales tax redesign. If needed, redesign the sales tax with a broader base and lower rate applied to final goods and services—not a VAT.

• Uniform protections. Cover every local jurisdiction, every dollar of revenue, and eliminate carveouts like disaster exemptions that politicians use to sidestep limits.

• Constitutional reform. Make it permanent. Enshrine elimination in the Texas Constitution to prohibit future legislatures from reversing course.

Why Not Eliminate Property Taxes?

Critics claim it can’t be done. The truth is, it can—if lawmakers have the courage. Spending is the problem, not revenue. With disciplined budgets, surpluses dedicated to relief, and a redesigned tax system if necessary, Texas can become the first large state to eliminate property taxes.

As DeSantis said, the real question is not can it be done—it’s why not?

Conclusion

The Texas House was right to reject SB 10’s weak conference report. But stopping a bad bill is not enough. Lawmakers must seize the momentum for real reform. Property tax elimination is not only possible—it’s necessary to secure Texas’s future.

Texas families with property deserve true owners had, and a government that lives within its means. That won’t happen with half-measures. It will happen only when lawmakers restrain spending, dedicate surpluses to tax relief, and take the bold step of ending property taxes once and for all.

Texas has the chance to lead the nation. The question is: will lawmakers have the courage to act?