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Harris County leaders debate potential property tax increase
Harris County homeowners could see a significant increase in the county portion of their property tax bills under a proposal being considered as commissioners work to finalize next year’s budget. FOX 26's Leslie DelasBour breaks down the numbers and what county commissioners had to say about the proposal.
HARRIS COUNTY, Texas - Harris County homeowners could see a significant increase in the county portion of their property tax bills under a proposal being considered as commissioners work to finalize next year’s budget.
Harris County property tax bills could be going up
What we know:
The proposed Harris County general fund budget calls for approximately $3.096 billion in spending.
According to budget figures provided by the county and analyzed by former Houston mayoral candidate Bill King, adopting the state-defined no-new-revenue tax rate would generate approximately $2.878 billion, leaving about a $218 million gap between projected revenue and proposed spending.
The county could address the gap by reducing spending, finding additional revenue or adopting a higher property tax rate.
The draft budget considers setting the rate near the state's voter-approval rate, generally the highest rate a taxing entity can adopt without triggering voter approval requirements.
King argues that scenario could result in the average homeowner paying approximately 12.3% more in Harris County property taxes.
That figure applies specifically to the Harris County portion of a homeowner's property tax bill and does not mean every homeowner's entire property tax bill would automatically increase by 12.3%.
The proposal has not been approved, and commissioners are still debating how to balance the budget.
Bettencourt, Ramsey push back on potential increase
What they're saying:
State Sen. Paul Bettencourt is among those sounding the alarm about the proposal, calling the potential increase one of the largest property tax increases in Harris County history.
Bettencourt said homeowners and business owners should pay attention to the upcoming vote and make their voices heard. He argues the county's problem is excessive spending rather than a lack of revenue.
Harris County Precinct 3 Commissioner Tom Ramsey also opposes increasing the tax rate.
Ramsey said the county is looking at roughly $325 million in increased spending and believes commissioners should instead look for ways to reduce expenses.
"We have a spending problem, not a revenue problem," Ramsey said.
Ramsey said alternatives could include making changes to spending.
He also argues taxpayers need to look beyond the county's general fund because Harris County residents pay taxes to several county-related entities. Ramsey warned that when potential increases involving other entities are considered, the overall impact on taxpayers could be greater than the 12.3% figure being discussed for the county portion.
Other commissioners say county is facing costs beyond its control
The other side:
Other members of Commissioners Court argue the county is being forced to deal with financial pressures coming from the state and federal levels.
Harris County Precinct 2 Commissioner Adrian Garcia blamed policies coming from Austin and Washington for putting additional financial pressure on local taxpayers.
"Regardless of whether you're a Democrat, Republican or Independent, the fact is that Governor Abbott's 'transformative policies' like tax breaks to his billionaire donors, more state unfunded mandates such as millions for 'election security' that will only make it more difficult to vote, and federal cuts to health care that forced hundreds of thousands to lose their insurance, all of that is forcing the discussion of a property tax increase," Garcia said in a statement.
Garcia went on to argue those policies are forcing additional costs to be absorbed at the local level.
Precinct 4 Commissioner Lesley Briones also said Harris County is facing a funding gap connected in part to decisions made at the state and federal levels, leaving the county to determine how to pay for services locally.
The debate comes as commissioners consider a proposed budget that would increase county spending by approximately $327 million, or about 12%, compared with the previous year.
Critics argue that increase far outpaces recent population growth and inflation and say commissioners should reduce spending before asking taxpayers for more money.
Supporters of additional revenue argue the county still has obligations to provide essential services while absorbing additional costs and funding pressures.
No final tax rate has been adopted.
What's next:
Harris County Commissioners Court is expected to take up the budget and proposed tax rate again on September 8.
The Source: State Sen. Paul Bettencourt, Harris County Commissioner Precinct 3 Tom Ramsey, Harris County Precinct 2 Commissioner Adrian Garcia, Harris County Precinct 4 Commissioner Lesley Briones and former Houston mayoral candidate Bill King.