As governor, Beto O’Rourke wants to reduce property taxes. Here’s how he plans to do it
As Democratic gubernatorial candidate Beto O’Rourke outlined his plan to reduce Texans’ property taxes on Wednesday afternoon in Dallas, he stood before a modest Oak Cliff home that tells the story of the last decade in the state’s booming housing market.
Between 2014 and 2022, the home on Ramona Avenue nearly tripled in market value from $44,690 to $133,460, according to the Dallas County Appraisal District.
Statewide, property taxes have risen $20 billion, or 40%, since his opponent, incumbent Republican Gov. Greg Abbott was elected in 2014, O’Rourke claimed.
Both candidates are taking a crack at the issue as homeowners across the state brace for the financial gut punch of their annual home appraisals. In Tarrant County, property values rose an estimated 20%, said Tarrant Appraisal District Chief Appraiser Jeff Law.
The plan O’Rourke outlined Wednesday consists of four pillars.
First, he’d work with local governments to address the statewide housing shortage, which is contributing to the spike in home values.
He’d also advocate for commercial property sales price disclosure, which, he argues, would ensure commercial property owners pay their fair share of property taxes.
“Most homeowners cannot afford the lobbyists or the attorneys that can contest corporate valuations. And so corporate property owners are able to bring down their bills by billions of dollars every single year,” O’Rourke said.
The largest chunk of property taxes fund the operation of local school districts. By creating a 50% threshold for the state’s contribution to public education, O’Rourke would reduce the tax burden on homeowners.
Finally, the provisions would be funded, in part, by Medicaid expansion and the legalization of marijuana, O’Rourke explained. Coincidentally, Wednesday was the international cannabis holiday.
Not only would opening this revenue stream save money on prosecuting marijuana-related crimes — which disproportionately target Texans of color — but it would also allow the state to reap the rewards of taxing marijuana sales, he said.
“Current leadership is more invested in stunts like shutting down commercial trade at the border and spending $5 billion on political theater where our state meets Mexico and the rest of the world,” he said Wednesday. “Those are resources that could have been invested in public education, for example.”
Abbott did not respond to a request for comment, but he has publicly touted his “taxpayer bill of rights,” which includes a property tax exemption for businesses on up to $100,000 of business personal property.
“This will lower the cost of doing business and keep our economy thriving!” Abbott tweeted earlier this month.
