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Legislative analysts: property‑tax relief costs rose from $18B to roughly $22.7B due to hold‑harmless rules and valuation assumptions

2154338 · January 27, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Legislative Budget Board analysts told Senate Finance that the property‑tax relief enacted two years ago cost substantially more than its original fiscal note because Texas Education Agency computations used different valuation assumptions and because multiple hold‑harmless formula provisions compounded the cost.

The Legislative Budget Board told the Senate Finance Committee that estimates of the cost of the property‑tax relief measures enacted two years ago grew markedly after implementation because of the interaction of appraisal values, how the Foundation School Program computes tier 1 tax rates, and several hold‑harmless provisions.

Aaron Hendrickson of the LBB summarized the office’s post‑implementation review: “In developing the fiscal note for Senate Bill 2, our office assumed a district's tier 1 tax rate would be based off of a value that incorporated the $100,000 homestead exemption. In implementing the provisions…

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