Eliminate Property Tax

Texas Rep. White Files Bill to Eliminate Property Tax

  • 04-05-2021
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The following press release is from Eliminate Property Tax.

Contact Information
Saul Mendoza, Chief of Staff | 512-463-0490

Texas Rep. White Files Bill to Eliminate Property Tax

HB3770 is a comprehensive legislative solution to completely eliminate property tax. It is the most significant tax law change in Texas history.

Austin – Representative James E. White (HD 19) has filed HB 3770, the Texas Tax Reform Act of 2021. The bill eliminates sales, property, and franchise taxes, replacing them with a fair, efficient, and transparent state consumption tax of 7% with a broader tax base.

When passed, Texas will become the first state in the union without a property tax.

Texas has eliminated property tax before. In 1982, Texas abolished all forms of state property taxes. However, they continued to be levied, without abatement, by over 5,000 local jurisdictions, school districts, cities, and counties.

As a result, Texans are increasingly being taxed out of homes, businesses, and off lands that have been in families for generations. To prevent this from ever recurring, HB3770 proposes a constitutional amendment to assure a property tax in Texas never happens again.

The bill’s solution is “revenue-neutral.” Local authority is maintained while replacing all eliminated tax sources with equivalent revenues. Using a reformed state and local consumption tax, it will be implemented carefully over time, using studies, evaluations, and pilots to avoid every unintended consequence.

Municipalities’ consumption tax cap rates are raised from 1/2% to 1% and the tax base broadened. Counties remain at 1%, but the broader tax base provides higher revenues. School districts are authorized to levy up to 1/2% within their boundaries for enrichment purposes, but the total local burden is capped at 3%.

County appraisal districts are eliminated. That ends the recurring annual ritual of over 2 million reappraisals, hearings, and denials that costs Texas tax-payers more than $500 million yearly.

This same proposal was first filed by Rep. George Lavender (HD 1) as the Texas Tax Reform Act of 2013. That bill is now revised and reintroduced as HB3770.

Rep. White currently serves as Chair for Homeland Security & Public Safety and sits on the Corrections and Redistricting Committees.

Read the bill

Please contact the members of the House Ways & Means Committee and respectfully urge them to request a public hearing for HB 3770 to Eliminate Property Tax.