Texas Tax Abatements Under Scrutiny Due to Revenue Shortfalls
What happened
Tax abatements in Texas, which provide property tax breaks for older residents and those with disabilities, are causing revenue shortfalls for local services funded by property taxes. Since Texas lacks a state income tax, this revenue loss is significant. Anecdotally, a millennial buyer noted that these abatements mean he may face inevitable property tax increases to compensate for the revenue loss.
From aol.com
Why it matters
The abatements are structured such that almost 40% of homesteads in Texas pay no property taxes for school districts, including about 61% of older and disabled homeowners. When revenue from older homeowners dries up, local governments are expected to find ways to cover budget shortfalls.
Texas House Bill 4384 was passed, providing tax benefits to businesses and residents.
From aol.com
Who's involved
- TexasState where the tax abatements are taking place and local services are funded.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- city councilSpeculative
City councils might face local revenue shortfalls due to the reduced property tax base.
- Texas Education AgencySpeculative
The Texas Education Agency might experience strain on school district funding due to reduced local property tax revenue.
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The entities involved
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Texas
state of the United States of America