The Texas Senate has bucked the wishes of the state's major cities and approved a controversial bill that would limit budget and property taxation growth in city government, News Radio 1200 WOAI reports.
The House approved an amended spending cap, limiting cities to a 6% increase in property tax increases per year, as opposed to the 4% increase approved by the more conservative State Senate.
Supporters of the bill say it doesn't prohibit cities from raising property taxes any more than 6%, it simply requires that they first put the higher tax rate to a public vote.
The measure covers property tax increases which are caused by property valuation increases as well as by increases in the tax rate.
Lawmakers say skyrocketing property taxes threaten to force people out of their homes and are making it more difficult for businesses to compete, especially with on line firms.But San Antonio city officials say the measure would result in very insignificant tax relief for homeowners.
Mayor Ron Nirenberg pointed out that school taxes are the lion's share of residential and business property taxes, and if the Legislature really wants to hold down local property taxes it should fully fund public education
."This Texas Legislature could pass meaningful property tax relief by fixing out broken school finance system, but instead it has set a target on local governments, which make up 16 percent of the property tax bill statewide," he said. "This could end up costing taxpayers far more than it will ever save them."
Bexar County Judge Nelson Wolff says if a school funding system currently before the special session is approved, the percentage of local school district operations covered by state revenues will fall from 45% currently to 38%. He estimates the result will be school property taxes going up by more than 13%.