Texas Conservatives Call for an End to Franchise Tax and Increase of Property Taxes


Texas conservatives want to kill franchise tax and limit the rate at which the government can increase property taxes. Republicans also have had similar plans in the past to promote this idea with no such luck.

According to Dallas News, currently property taxes can be increased up to 8 percent every year. Conservatives would like to restrict local government from increasing property taxes by more than 2.5 percent unless voted upon.

Republican Governor Greg Abbott suggested decreasing the 8 percent to either 6 or 4 percent revenue each year however officials argued that it would affect police protection and public schools.

Property taxes play a big role in public schools. The higher the revenue received by property taxes the lower the amount the state has to compensate for.

Economist Vance Ginn says by imposing state spending caps and diverting the savings towards the schools, the state could eliminate the need for property tax funding. While Eve De Luna Castro, state budget analyst, says we can’t rely on those numbers because sales tax is too unpredictable.

If conservatives succeed in cutting franchise tax altogether the state would lose 6.5 percent of their revenue but Ginn says we could replace that with surplus fund. To read more in depth about this issue please click here.

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