Most Texans won’t see a cent of the more than $5,630 million in property tax relief promised in the pending tax reform initiative House Bill 3. Under the bill’s current version, people making more than $100,000 a year are the only ones who will end up owing the state less than they already do. According to Legislative Budget Board figures, those with an annual income no higher than the low $10,000s will owe 5% more in taxes by fiscal year 2007. Middle income earners – those in the low $40,000s to low $50,000s – will owe 3% more in taxes by FY 2007. Together, these two groups constitute about 80% of the population, according to LBB figures. Those in the highest income bracket, making $140,000 and above, will enjoy a nearly 3% tax decrease under HB 3. According to the Washington, D.C.-based Economic Policy Institute, Texas’ median household income hovers slightly above $39,000.
This article appears in March 25 • 2005.