Builders of Hope CDC Launches Statewide Property Tax Reform Policy Guide
Rising property taxes have long burdened low- and moderate-income homeowners in Texas, threatening their housing stability and financial security. Recent and rapid increases in property values across the state have only exacerbated the issue, placing added pressure on vulnerable families and communities. Today, Builders of Hope CDC is excited to announce the launch of the Property Tax Reform Policy Guide, developed in partnership with the University of Texas School of Law’s Housing Policy Clinic. This guide presents four state legislative reforms aimed at protecting vulnerable homeowners and creating a fairer and more equitable tax system for all.
Why Property Tax Reform Matters
The current property tax system in Texas creates significant challenges for low- and moderate-income homeowners, particularly those in neighborhoods with rapidly rising property values. For families on fixed or limited incomes, rising taxes can lead to financial strain, deferred home maintenance, or even displacement. In many neighborhoods across the state, redevelopment pressures are also contributing to disproportionate surges in property values and tax increases.
The Property Tax Reform Policy Guide outlines four key reforms to address these challenges and create a more equitable system for all Texas homeowners:
1. Local Option Flat-Dollar Homestead Exemption
By allowing cities and counties to adopt a flat-dollar homestead exemption, as we currently do for school districts, we can ensure all homeowners receive the same level of tax relief, regardless of their property's value. This would replace the current percentage-based system, which unfairly benefits owners of high-value homes. A flat-dollar exemption would deliver consistent, meaningful relief to homeowners.
2. Property Tax Circuit Breaker Programs for Income-Eligible Homeowners
Unlike income taxes, property taxes are not based on a person’s ability to pay, creating an unsustainable system for low- and moderate-income homeowners as property values rise. Circuit breaker programs provide targeted relief to low- and moderate-income homeowners whose tax burdens are disproportionately high relative to their income, helping to increase housing stability and mitigate the threat of residential displacement.
3. Sales Price Disclosure for Properties
Texas is currently one of only twelve states that does not require the disclosure of property sales prices, making it very difficult for appraisal districts to accurately assess property values. By mandating the disclosure of property sales prices, Texas appraisal districts can improve assessment and ensure a fairer distribution of tax burdens between residential and commercial properties. This reform would primarily impact undervalued commercial and industrial properties, shifting the tax load away from homeowners and onto commercial properties that are currently under-assessed.
4. Restoring Homestead Exemptions for Undocumented Homeowners
Until 2012, all taxpayers in Texas were eligible to receive a homestead exemption on their primary residence, regardless of immigration status. Denying undocumented homeowners access to this benefit imposes a disproportionate tax burden on them, threatening their financial and housing stability. Reinstating this benefit for all homeowners would foster community stability and economic security for families and neighborhoods across the state.
The Path to Change
Texas homeowners are struggling under an existing property tax system that disproportionately burdens low-and moderate-income homeowners. Without meaningful and targeted reforms, vulnerable households and families in Texas will continue to face steep and rising tax burdens that threaten their financial security, housing stability, and ability to remain in their communities. The policies set forth in the Property Tax Reform Policy Guide present a clear path forward towards creating a more fair and equitable tax system that works for all Texans.
Join Us in the Fight for Equity
Builders of Hope CDC is committed to ensuring that families in Texas can remain in their homes and communities. But we can't do it alone. We invite you to join us in the fight for housing and neighborhood equity!
Sign up for our email list here and follow us on social media to learn more about the important work we’re doing in Dallas and across the state.
ICYMI: Builders of Hope CDC has also recently released A Right To Stay: Dallas Neighborhood Anti-Displacement Toolkit. If you are interested in learning more about local policies that can mitigate displacement pressure, download A Right To Stay today!