Dallas Morning News
By Dallas Morning News Editorial
2:00 AM on Feb 2, 2023 CST

There is no question that property tax relief should be the top priority of the Texas Legislature this session. As valuations have spiraled, homeowners have faced unsustainable increases in what they owe local taxing districts.

But it’s true that this tax relief will not be fairly shared among all Texas residents. As our colleague Philip Jankowski explained in a story this week, renters are unlikely to benefit, since the proposed tax relief would come in the form of an increased homestead exemption on local school district property taxes.

Expanding the homestead exemption would not affect taxation on multifamily properties, which are taxed as commercial properties.

Because Texas, and especially major urban areas, lack enough housing of every type, and especially multifamily properties, rent prices have skyrocketed. Working people are paying too much of their paychecks to have a roof over their heads.

Part of that price is the taxes that landlords pass along to tenants in the rent bill.

So how can we get tax relief to those who need it most?

The Legislature should look beyond property tax. Cutting the 6.25% sales tax burden the state charges on consumer purchases would be painful for lawmakers, who would need to make decisions about state expenditures that those taxes fund. But it would put some money back in the pockets of every Texans. As Jankowski notes, 40% of Texans are renters. That number is higher in major cities.

Sales tax revenue has grown significantly for the state. In fiscal year 2018, Texas collected $32 billion in sales tax. In the last fiscal year, it was $43 billion, according to data from the state comptroller’s office.

House Speaker Dade Phelan told Jankowski that “Maybe we need to look at more than property tax. Maybe sales tax.”

Not maybe, Mr. Speaker. Definitely.