NUECES COUNTY, Texas — Texas lawmakers are moving forward with legislation that would significantly reduce how much cities and counties can collect in property tax revenue without voter approval, dropping the cap from 3.5% to 1%.
The bill has passed both the House and Senate, but lawmakers must agree on the exact percentage before it reaches Gov. Greg Abbott's desk. The Senate version proposed a 2.5% cap.
In Nueces County, the proposed change would impact the local budget significantly. Nueces County Judge Connie Scott says counties rely on property tax revenue as their main source of funding, unlike cities that have access to additional revenue streams.
"The state in their good intentions sometimes fail to separate cities from counties. We do not get sales tax revenue, we do not get hotel/motel tax," Scott said.
"That would be truly detrimental to counties especially," Scott said.
While public safety budgets cannot be touched, other areas like projects, the public works department and hiring ability would be made more difficult under the proposed cap.
"There are requirements the county is required to provide for. We have the same bills as people at home do," Scott said.
Supporters of the bill, like John David Crespo, say it gives taxpayers more of a say and forces local government to be more transparent with funding. Crespo moved to Texas because his property taxes in Florida were becoming unmanageable.
"It's ridiculous. I went from $4,000 a year to $5,700 the next year," Crespo said.
Crespo says he doesn't mind changes in the county's budget or departments if it means avoiding a repeat of his experience in Florida.
"Yes because everybody is struggling to make ends meet and I was on a fixed income, I was on disability. That's why I lost my house," Crespo said.
However, some argue that what homeowners would save is minimal - potentially just a couple of dollars per year.
"I don't know if this is a relief to homeowners. I mean I think you have a voter approved amount," Scott said.
Scott says a couple of years ago the county's tax rate was at .24. With the voter approved rate, they can get up to .26. Scott says the county hopes to move forward with their budget, setting their tax levy at .28.
She says she wants to keep property taxes down but hopes lawmakers can find other ways to help fund the county.
"We've got to start looking at alternative sources, we got to start being proactive and that's what I intend to do this next legislative session. I'm going to be asking for additional funds, for additional revenue sources and potentially sales tax," Scott said.
The Texas House and Senate must settle on a final version of the bill before Abbott can sign anything into law.
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