On the heels of what proponents have called “historic” property tax relief, some Texas lawmakers are questioning whether the state can afford to continue increasing the tax exemptions passed during the 2023 and 2025 legislative sessions.

The big picture

The state of Texas does not charge property taxes, meaning homeowners are taxed by local entities such as school districts, cities, counties, hospital districts and municipal utility districts.

However, lawmakers can place limits on how much local governments can increase taxes each year and require tax exemptions for certain groups. When the state creates or expands tax exemptions, it is often constitutionally required to send money to school districts to ensure they do not lose revenue as a result of the lower taxes.

Texas is sp

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