Can Gov. Greg Abbott eliminate property taxes? Maybe with sky-high sales taxes.

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However, unless paired with significant cuts in spending, any reduction in property taxes will have to be made up with tax increases somewhere else. Some advocates haven't been shy about this reality. Abbott even briefly championed the idea of replacing all property tax revenue with higher sales taxes.

So we put that idea, replacing all property tax revenue, to the test at the Baker Institute for Public Policy's Center for Tax and Budget Policy and examined how much the sales tax rate would have to increase to replace the current property tax revenue. The results are dramatic.

Local governments in Texas collected $82 billion in property tax revenue in 2023. In order to replace that revenue, our calculations indicate that the state sales tax rate would need to be raised to 22%. Texas' sales tax rate is currently at 6.25%, and local entities can increase it to 8.25%.

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How high would you be okay with seeing sales taxes in Texas go in order to eliminate property taxes?

For myself, doing some quick math, increasing the sales tax to 22% would, with near certainty, increase my overall tax burden even if my property tax were completely eliminated.

Several studies put it at 14.68%. Seniors and the poor will not go for this massive change.

We'd definitely pay more in taxes.

How 'bout noooooooooooooo.......

There is no way that number is correct. If so, it's a non-starter.

I will always choose a consumption-based tax over a property tax that gives me no alternative but to pay the rate they demand for property I already purchased and own...

It's not going to happen. Just a reelection gimmick. After he's elected it'll be business as usual.

Like I keep saying...they are going to get their money one way or the other. Pick your poison.

send it! i hate that i nearly have to retire elsewhere to own a lakehouse.


i pay taxes for my house plus 2 others in one ISD ... I pay nearly 20k (20k to local as well) between them. And i am not even allowed to use the local middle schools fields to play on with my kids.


Much like the capitol building on January 6th - I own that field. Stop requiring me to pay for your publicly funded stuff and not letting me use it.

And renters should not be exactly wild about this, unless we are going to let those properties not be taxes as well? Or, maybe we should should just triple those taxes and we won't have to raise the sales tax as much?

Nothing like taking an inequitable system and making it even more inequitable.

Abbott running for another term, blowing smoke.

Cap it at 1.5% along with a 5% cap on taxable value for primary residence and tell the CADs to figure it out.

2nd homes and investment properties shouldn't be included.

Here's an idea. Stop wasting our ****ing money so you wouldnt need such high taxes in the first place.

As with all gov't: it's not a revenue problem. It's a spending problem.

FireAg said:

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I will always choose a consumption-based tax over a property tax that gives me no alternative but to pay the rate they demand for property I already purchased and own...

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Yeah F that! It would quadruple what I pay in state taxes now if I continued to consume like normal.

While I do prefer a consumption tax over a property tax, not at 4 times the cost.

FireAg said:

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I will always choose a consumption-based tax over a property tax that gives me no alternative but to pay the rate they demand for property I already purchased and own...

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100%. No renting property from the gov.

If 22% is the number, then the cost of government is too danged high!

FireAg said:

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I will always choose a consumption-based tax over a property tax that gives me no alternative but to pay the rate they demand for property I already purchased and own...

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So, you'll be able to negotiate the sales tax rate every time you buy something?

Our problems have been, are, and will always be a spending problem.

Trying to figure out different ways to fund the profligacy is a waste of time.

Cromagnum said:

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Here's an idea. Stop wasting our ****ing money so you wouldn't need such high taxes in the first place.

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THIS!

I mean, our roads SUCK. One of the few things, unfortunately, they SHOULD be doing and they suck at it.Yet, we get taxed out the ass for stupid, ****ty things.

Tom Fox said:

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FireAg said:

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I will always choose a consumption-based tax over a property tax that gives me no alternative but to pay the rate they demand for property I already purchased and own...

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Yeah F that! It would quadruple what I pay in state taxes now if I continued to consume like normal.

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We're all free to make our own choices. But like it or not, making the amount you're taxed a choice based on your spending decisions vs a mandate that strips true home ownership from the citizenry is a more principled approach, assuming that eliminating taxes altogether won't be an option.

And as much as we wish our districts and municipalities would stop pissing off money, we know that fiscal conservatism is a pipe dream as well.

Eliminate or freeze ONLY homestead property taxes, restrict/cap other property taxes, and adjust sales tax by only enough to account for that. So, not as extreme as eliminating all property taxes but enough to provide relief and force responsibility.

After Talarico wins the US Senate seat defeating Paxton, will Republicans wake up and invent real solutions?

Abbott needs to focus on the Equal and Uniform loophole and get the commercial/industrial real estate property owners to pay on the true value of their property.

AgGrad99 said:

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There is no way that number is correct. If so, it's a non-starter.

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~$82 billion in property tax collected. Sales tax collected by the state at 6.25% generated ~$41 billion in revenue. So you have to triple the state sales tax, minimally, to accrue the property tax revenue.

Half of the property tax comes from non-residential sources, so you could reduce property taxes with a smaller increment in sales tax, but it would be a tough sell to entirely remove them.

sanangelo said:

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After Talarico wins the US Senate seat defeating Paxton, will Republicans wake up and invent real solutions?

Abbott needs to focus on the Equal and Uniform loophole and get the commercial/industrial real estate property owners to pay on the true value of their property.

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Don't disagree with the second part but I think you are Talarico's "only fan" on this board.

Correct, that's assuming all properties are exempt, rather than just homesteads. I cannot imagine that's what would be proposed.

Though I tend to think this is nothing more than a re-election ploy

Omperlodge said:

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sanangelo said:

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After Talarico wins the US Senate seat defeating Paxton, will Republicans wake up and invent real solutions?

Abbott needs to focus on the Equal and Uniform loophole and get the commercial/industrial real estate property owners to pay on the true value of their property.

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Don't disagree with the second part but I think you are Talarico's "only fan" on this board.

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Nope. Talarico is the Antichrist. I think he's a phony. However, he sounds good to Christian conservatives. When Paxton defeats Cornyn in the primary, Paxton will be dead meat to this guy because he will successfully expose Paxton for who Paxton is.

sanangelo said:

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After Talarico wins the US Senate seat defeating Paxton, will Republicans wake up and invent real solutions?

Abbott needs to focus on the Equal and Uniform loophole and get the commercial/industrial real estate property owners to pay on the true value of their property.

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Poop slap?

A consumption tax would be shared with all, including guests to the state. You cant base a study on just Texas residents. You could even raise it more based on residency to Texas or not just like we do with hunting/fishing licenses.

sanangelo said:

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Omperlodge said:

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sanangelo said:

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After Talarico wins the US Senate seat defeating Paxton, will Republicans wake up and invent real solutions?

Abbott needs to focus on the Equal and Uniform loophole and get the commercial/industrial real estate property owners to pay on the true value of their property.

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Don't disagree with the second part but I think you are Talarico's "only fan" on this board.

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Nope. Talarico is the Antichrist. I think he's a phony. However, he sounds good to Christian conservatives. When Paxton defeats Cornyn in the primary, Paxton will be dead meat to this guy because he will successfully expose Paxton for who Paxton is.

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LOL...No, he doesn't...

'Devout Christian' Dem caught following prostitutes, OnlyFans models on social media

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He was reading from the book of lurk.

Texas Democrat James Talarico, a self-professed "devout Christian," has been following prostitutes and porn stars on social media, even exchanging messages with some of the busty women, a new bombshell report revealed.

The four-term House rep. follows at least 10 accounts belonging to OnlyFans models, adult film actresses or escorts.

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Signed,
Christian Conservative


I'm saying that as a believer that K. Paxton is a POS. I'll be voting for Wesley Hunt in the primary, but will vote Paxton if it is between him or Talarico.

Martin Cash said:

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FireAg said:

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I will always choose a consumption-based tax over a property tax that gives me no alternative but to pay the rate they demand for property I already purchased and own...

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So, you'll be able to negotiate the sales tax rate every time you buy something?

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I'll be able to have a choice as to what I buy…

hph6203 said:

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AgGrad99 said:

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There is no way that number is correct. If so, it's a non-starter.

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~$82 billion in property tax collected. Sales tax collected by the state at 6.25% generated ~$41 billion in revenue. So you have to triple the state sales tax, minimally, to accrue the property tax revenue.

Half of the property tax comes from non-residential sources, so you could reduce property taxes with a smaller increment in sales tax, but it would be a tough sell to entirely remove them.

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Per the interwebs:

"Single-family residential properties, which primarily consist of homesteads, made up approximately 45% of the total taxable value in Texas in 2023. The exact percentage of total property taxes paid specifically by "homesteads" (properties with a homestead exemption) is not a single, readily available figure, as it varies by local taxing unit and the exemptions applied. "

So, if we were only to eliminate property taxes on homesteads, it SHOULD be relatively feasible to make up the revenue shortfall without going absolutely BSC on sales taxes. The exact amount needed would depend on what % of single family residential properties are true homesteads and which are investment properties. But we'd only need to shore up something south of $40 billion a year.

So an increase of somewhere between 1x-2x (total tax rate of 12.5%-18.75%) to sales taxes SHOULD be sufficient. Not nothing, but not unbearable.

AgGrad99 said:

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There is no way that number is correct. If so, it's a non-starter.

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its low

FireAg said:

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I will always choose a consumption-based tax over a property tax that gives me no alternative but to pay the rate they demand for property I already purchased and own...

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Me as well.

Income tax: income goes down, taxes go down.
Sales tax: spending goes down, taxes go down
Property tax (a wealth tax): you owe it for as long as you own the property, regardless of your income

Would bet on the higher end of that and you definitely make the state a generally non-investing real estate market for rental homes, which I'm okay with. You have to come up with more than just the homestead percentage unless you want to burn multi-family renters.

one safe place said:

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FireAg said:

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I will always choose a consumption-based tax over a property tax that gives me no alternative but to pay the rate they demand for property I already purchased and own...

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Me as well.

Income tax: income goes down, taxes go down.
Sales tax: spending goes down, taxes go down
Property tax (a wealth tax): you owe it for as long as you own the property, regardless of your income

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the most efficient way to stifle an economy is to tax spending. it acts as friction on free commerce.

The higher a sales tax is, the higher prices are, which through basic economics means the lower quantities are demanded, meaning the sales tax will have to be higher to collect the expected revenue. Sales tax for many items will also start leaking over borders. Economic activity generally will also decline, businesses cut jobs because there are fewer sales, fewer workers able to pay prices after tax etc etc.