Why Texas Developers Should Monitor School Tax Changes

By Matt Larsen and Bucky Brannen (September 10, 2020, 5:13 PM EDT) -- Texas property tax rates are among the highest in the country, often exceeding 2.5%. School districts collect the largest share of this tax, with many districts collecting more than half of the total rate.

In 2019, the Texas Legislature's H.B. 3 made major changes to the school finance system, with one of the primary objectives being to lower school district property taxes. Last month, the Texas Education Agency released estimates of how H.B. 3 will affect each school district's 2020 tax rates.[1]

For many districts, these rate reductions are significant. Moreover, H.B. 3's tax rate compression is a permanent, one-way street...

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