How confident are you that you own your Stephenville home or place of business? Some are wondering if the property tax system in Texas is too archaic for today’s landscape. According to the current property tax system in the State of Texas, every property owner pays an annual tax to the government, and if, for whatever reason, that tax goes unpaid, then the government has the authority to seize your property. Fortunately, the system may be changing.
In the run-up to the next legislative session, many lawmakers have called for an elimination of Texas’ property tax system. State Rep. Harvey Hilderbran, chairman of the influential House Ways and Means Committee, is the latest high-profile official to voice his opinion on the idea. He recently said he will begin the process of abolishing residential and commercial property taxes during the next legislative session. There are no details about what he might replace it with at this time, although he says he’s open to suggestions.
One idea is to get rid of the property tax and replace it with a reformed sales tax in a dollar-for-dollar tax swap. Adjustments to the state’s sales tax rate and base would help lawmakers keep revenues consistent and also return an important freedom back to Texans. The most popular scenario is to slightly raise the tax rate to 9% and expand the base to most goods and services taxed in at least one other state, including the sale of property.
Even a small change could signal an improvement for property owners while allowing the government to maintain their revenue stream. Some believe that this change could also lead to many new jobs over a five-year period because of increased economic activity.
Stephenville home owners know why this is such a great place to call home. Please contact us if you’re interested in Stephenville real estate. We would love to show you around!