PRESENTATION: THE FIX WE'RE IN

The fix we're in

Texas lawmakers spent two-thirds of 2005 grappling with the important issue of how to equitably pay for our children’s education. Our state’s current school-funding system relies too heavily on property taxes, and has been declared unconstitutional by the Texas Supreme Court. Last year’s 79th regular session plus two special legislative sessions—not to mention three special sessions in 2004—failed to produce consensus on how to fix the problem.

Texas REALTORS® realize the future of Texas depends on our leaders successfully meeting this challenge. That’s why we’ve worked hard to support legislators' goals of lowering your property taxes while adequately funding public schools. Truth is, Texas property owners have been paying more than our fair share for far too long. Property taxes in Texas are among the highest in the nation, which hurts homeowners and hurts our economy. How do we ensure our children's future and the future of Texas, while giving property owners much-needed tax relief?

The Texas Association of REALTORS® supports the Texas Tax Reform Commission’s approach, which would lower your local school property taxes and spread the tax burden among virtually all businesses in Texas. Unlike previous legislative proposals, the commission’s plan would not increase sales taxes, which is a regressive form of taxation.

Because of the way our taxing system is set up, many businesses operating in Texas do not currently pay state taxes. The commission’s plan would change that. Fortunately, leaders in the business community—including real estate—are willing to pay their fair share for the good of Texas.

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