Could we kiss our property tax bills goodbye by modestly increasing the sales tax? That’s among the options now floating around the Texas Capitol. If it sounds too good to be true — you’re right. Even a cursory look at the numbers shows that swapping property taxes for a higher sales tax is unrealistic.
While the Legislature imposes a number of taxes — sales, franchise, severance, etc. — the property tax isn’t one of them. The multitude of local governments that levy the property tax include school districts, cities, counties and a plethora of special districts such as junior colleges, hospitals, roads and water and wastewater districts. However, the Legislature can have a tremendous impact on your tax bill because it writes the laws that control how local entities set their property taxes.