• Press Release

New Statewide Property Tax Proposed for Texas

  • By: FW Staff
  • 04/03/2002

Peggy Venable, director of Texas Citizens for a Sound Economy, denounced the new statewide property tax proposed by Lt Gov Bill Ratliff today as tax increase and a new tax. The plan was released at a meeting of the School Finance Committee. Here are Venable’s comments along with an outline of the plan:

“In this plan, the State of Texas would be the King of Knottingham while Robin Hood and his Merry Men in Sherwood Forest take more from us all, not just the rich.

This plan does not address the disparity of property evaluation.

This plan would essentially make teachers state employees.

This plan proposes levying an additional statewide property tax to fund the Teacher Health Insurance Plan passed last session. That’s a sure-fire tax increase.

This plan dilutes local control.

The devil is in the details and this plan is full of troubling details.

“Instead of instituting a new tax, we need to look at what constitutes a basic or adequate education. What is the cost of that basic education? And what are we currently getting for our education dollars?

“The plan simply funnels more tax dollars into education without asking any questions regarding outcome.

We would agree with Sen. Florence Shapiro who said, “We need to connect funding to outcome; we need to define an adequate education and then strive to reach that.”

The new statewide property tax plan proposed today by Lt. Governor Bill Ratliff will require a constitutional amendment. In the statewide property tax plan:

  • Legislature will levy a dedicated statewide property tax of $1.40 per $100 valuation for the operation of the schools which would go into general revenue funds. This, coupled with other general revenue funds, would be used to fund the schools.

  • All money goes to the state and coupled with general revenue appropriations would constitute the foundation school program funding.

  • Abolish local school board authority to levy property taxes for maintenance and operations. Local school boards can do up to $0.10 per $100 valuation for local enrichment.

  • Limited state funded support for debt service on school facilities.

  • Provides for a supplemental statewide property tax to fully fund the teachers health insurance plan at a level comparable to state employees.

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