Testimony Before the Texas Senate Committee on Finance, Presented by Vance Ginn, Ph.D. on September 4, 2024

Chair Huffman and Members of the Committee,

Thank you for the opportunity to testify today. I am Dr. Vance Ginn, president of Ginn Economic Consulting. Over the last decade, the Texas Legislature has made progress in property tax relief, but the affordability crisis demands more action. Property taxes are not just a financial burden—they are fundamentally immoral. They force Texans to perpetually rent from the government, functioning as unrealized capital gains and wealth taxes paid annually. This system makes it difficult for families with low or fixed incomes to build and pass on a legacy.

​Last session, despite a $32.7 billion surplus, new property tax relief was limited to just $12.7 billion. And the state budget increased by a record 32% in state funds from GAA appropriations to appropriations

Although this was the second-largest tax relief amount in Texas history, property taxes increased by $165 million last year from excessive spending by local governments.

The path forward is clear: spend less and reduce property tax rates rather than complicating the housing market with homestead exemptions, discounts, and abatements that make elimination more difficult. To eliminate property taxes, consider three simple steps:

1. ​Cap property taxes to the no-new-revenue rate and freeze school district M&O taxes.
   
2. Pass sustainable budgets that limit government spending, with a strong spending limit based on a maximum rate of population growth plus inflation at the state and local levels, like Colorado’s TABOR, but better would be to pass a Frozen Texas Budget or cut spending by at least 10%. 
3. Use surplus revenue by the state to compress and eliminate school district M&O taxes in about a decade, ending Robin Hood and having taxpayers pay 100% of these taxes through the state. This should include less spending on public education with more efficient universal education savings accounts. Local governments should use their surpluses to reduce their property tax rates to zero.

This three-step process will help curb soaring property taxes and pave the way for a more prosperous future without property taxes to preserve life, liberty, and prosperity. Thank you for your time, and I’m glad to answer any questions.