Texas wiping out local school property taxes? Sounds great. But watch that fine print

Spring is the season of hope — but it’s also the season of property appraisal notices.

So, we’ll forgive Texas homeowners opening their mail to another double-digit increase if they’re not feeling too optimistic about meaningful cuts in the taxes they pay.

And yet, there’s talk in Austin of a real effort to undertake the only step that will significantly reduce those bills: more state spending on public education. Lt. Gov. Dan Patrick has charged the Senate Finance Committee with studying ways to “use or dedicate state revenues in excess of the state spending limit to eliminate the school district maintenance and operations property tax.”

School taxes make up the lion’s share of property tax bills; your cities, counties and hospital districts are a pittance in comparison. In the Fort Worth area, property values have been rising relentlessly, driven by population growth and the resulting boom in real estate prices.

It’s laughably ambitious to think the state could fully fund K-12 education in one fell swoop. Talk of 100% state funding, far fetched as it may be, is a sign of how property taxes continue to frustrate voters — and how much state leaders and lawmakers are hearing it from their constituents.

Those officials, with the state flush with cash from a robust economy and energy-tax income, are willing to consider higher state spending than ever before to get those local tax bills down.

Sounds great, right? Not so fast.

Yes, the state should bear much more of the burden for educating Texas children. But it will come with consequences that must be forthrightly addressed.

The first is volatility. Sales tax is the biggest source of state revenue. When the economy falters and Texans spend less, the state has fewer dollars to work with. Tax revenue is strong now, but if the state funds more of education, a recession could mean significant cuts in school spending and even deeper cuts elsewhere in the budget.

Sales taxes are also more regressive, meaning they hit poorer Texans harder than the well-to-do.

Let’s not forget the Golden Rule. No, the other one: He who has the gold makes the rules. If the state were the sole source of operating expenses for school districts, local communities would lose the flexibility to shape many of their own programs.

Any significant change from the state would likely come over several years, if not decades. In the meantime, homeowners should take advantage of any break possible. The biggest is the “tax ceiling” available for those 65 and older. Total taxes owed are frozen, even if property values rise. But it’s not automatic; homeowners must apply through their appraisal districts.

Voters also have a chance to approve some modest relief via two Texas constitutional amendments on the ballot next month.

They’re complicated. The first would allow for seniors whose property tax bills are frozen to benefit from the last state buydown of rates, the 2019 legislation that increased state education spending and slowed local tax growth.

The second would apply more broadly, increasing the homestead exemption for school-tax purposes by $15,000. Lawmakers estimate homeowners would save an average of $175 if voters statewide approve.

In an era of 8.5% inflation, it’s not cause for celebration. But it’s a step in the right direction.

After all, when the appraisal notice and the tax bill arrive, there’s great temptation to shout agreement to any idea to ease the pain. Let’s just make sure Texans fully debate the potential consequences and trade-offs first.