The Texas Biennium Budget Begins with the Comptroller providing the General Revenue-Related Funds Available for Certification. This is the amount of discretionary funding the Texas Legislature has available to disperse during the legislative session. The other component of the Texas Budget is Discretionary Revenue. This is the nondiscretionary expenditures that must be funded and over which the Texas Legislature has little if any control. The breakdown is as follows:
Nondiscretionary Funding $185.72 Billion 51% of the budget
+ General Revenue-Related $176.43 Billion 49% of the budget
= Total 2-26-27 Revenue-Related $362.15 Billion Estimated by Comptroller
Going through other iteration, the Comptroller has calculated that the 2026-2027 General Related Funds Available for Certification is $194.6 Billion. This is relevant for Texas Taxpayers as this is an increase from 2024-2025 biennium of $188.23 Billion. An increase from 2024-2025 Biennium of $6.37 Billion. In addition, the projected Total Tax Collections for 88th Legislative Session (January 2023) was $148.7 billion for the 89th Legislative Session (January 2025) it is $155,42 billion. An increase of $7.2 Billion most ot that in $6.3 billion in collected sales tax.
Just 1/2% from (6.25% to 5.75%) cut in the sales tax rate would only reduce the sales tax collected by $8.2 billion.
Texas revenue sources consist of 2 parts, Texas Collected Revenue and Federal Government.
Every Texan knows we are overtaxed. But how?
First of course is sales tax as covered in the first 2 segments. In addition, are any
number of user fees, fees and tolls. The other frustrating tax is our property taxes. Which are out of control for a different reason than sales tax.
Property taxes are all local. Texas does not have nor collect property taxes.
This is integral as to why after 20 years of “now you see it, now you don’t
property tax relief” there has been none. The Texas legislature only pretends to fix
something they have no control over. They do have direct and complete control
over the sales tax rate. They could cut the sales tax rate in this Special Session and
all Texans whether they own property or not, could be paying 1% less on all their taxable purchases. Think of the implications on inflation in Texas, if the Texas Legislature would allow it.
Property tax reform begins with an End to Corporate Welfare – The Texas legislature picks and chooses property tax relief with a variety of corporate
welfare schemes. These structured government arrangements, disguised as economic development, allow certain government chosen entities to have greatly
reduced to completely exempted tax values on the property tax rolls. As each of these commercial properties are not taxed according to their real value,
all the other property owners, homeowners and small businesses, are left footing the bill.
Finally, and this cannot be emphasized enough, property taxes are locally controlled. The fundamental social construct of property tax revenue has completely disintegrated. As a community grows and prospers, the property valuations increase. This appreciation is good for all. BUT the governing entity is morally bound to lower the tax rate. It is immoral leadership that has created this grotesque situation with property taxes in Texas. It is broken and must be fixed. And it is up to local electorates to fix it! During these primaries challenge every candidate for county judge, commissioner, city council, schoolboard trustee:
♦ “How are you going to bring exempted commercial property back on the tax rolls?”
♦ “How much are you going to lower the property tax rate?”
If they object, “can’t afford a rate cut.” Does anyone even question that school districts have bloated administrations?
Demand they get with the County Appraisal District to find how many properties are not fully taxed or are off the tax rolls completely. Isolate these properties and
investigate why are they getting such exemptions and any commitments made to economic development are being met. Otherwise back on the tax rolls they GO!
Let’s lower all taxes for all Texans. Sales tax reduction is well documented here. To
eliminate property taxes becomes more complex than realized. Eliminate means city, county, school district, utility district, Port Authority and all other property taxes that are assessed. It would require unwinding all kinds of bonds that have been voted in over many years. Commercial property owners will be the biggest winners. All their current tax payments will now be passed on to every Texan to pay personally. Nothing against commercial property owners. But absorbing their taxes will be a challenge! Those are the devils in the details of Eliminate Property Taxes. As an advocate for good governance, my constant caveat is “be careful what you ask for.” Eliminating property tax is more than fine with me. But most of the plans I have seen only replace the Property Tax with another tax. Most of the plans have the tax replaced with a consumption tax either direct increase in sales tax rate or a VAT style tax structure.
It is completely documented that consumption taxes are regressive taxes. Meaning they are more onerous on those in the lower socioeconomic levels. To accommodate this disparity, accommodations in the taxing structures must be made. This is exactly what had to be done to a eliminate property tax program in Idaho. Which as is often the case, only “eliminated” the county property tax. The same is pretty well taking place with the concepts here. A 7-to-8-year design to only replace the School District Maintenance and Operations property tax. It does not even address the School District’s Interest and Sinking property tax.
The focus needs to be to lower all taxes for all Texans and a big part of that is less government spending. That coupled with lower sales tax rate and property tax rates would force a discipline on government spending. Government “surplus” is a absurd notion only a politician can embrace. It is time someone lobbies for the Texas Taxpayer.
Texas has no excuse not to provide Tax Relief to the Taxpayers. Not only do taxpayers have the right to keep more of their own money, the Legislature is proving incapable of any resemblance of spending self-discipline and worse an intent to squander hard earned dollars that fill the Treasury. There are many examples but by far the worse is subsidizing Hollywood filmmakers. The numbers clearly show just the exorbitant amount of money that should never even leave the pockets of Texas Taxpayers.
2026 2027 Comptroller’s estimate $ 362,153,067,000
2026-2027 Legislative Budget Regular Session $ 338,000,000,000
Collected Texas Revenue VS Budget Expenditures $ 24,153,067,000 “Surplus”
Impact of a 1% cut in Texas State Sales Tax from 6.25% to 5.25%
Collected Texas Revenue VS Budget Expenditures $ 24,153,067,000 “Surplus”
Decrease in Collected Sales Tax $ 16,707,993,600
Amount Still Available in the Texas Treasury $ 7,445,073,400
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.