ODESSA, Texas — Local appraisal districts all around Texas, under the direction of the state, were told to reflect property tax relief that's going to be on the ballot this November.
But how is the state able to afford giving out property tax relief like this? Where did all this money come from?
"Folks have been really struggling with high inflation and that has led to a surplus of revenue in the state's coffers, and we thought the best way to spend that revenue is to give it right back to the taxpayers who paid it," State Representative Brooks Landgraf said.
This tax relief will also be affecting the tax rate of independent school districts. But according to Landgraf, the state is in a position to make sure no one is getting the short end of the stick.
"We are forcing independent school districts all across the state to cut taxes but then to make sure we don't lose any public education funding that money is being replaced dollar for dollar by budget surplus revenue from the state of Texas," Landgraf said. "So it prevents people from being taxed twice but it also drives down property taxes."
As part of the state's tax cut package about $7.1 billion will be sent to school districts. So, they can lower their tax rates.
It's known as what's called a "compression" and would reduce a school district's maintenance and operations property tax rate.
The M&O tax, as it's called, helps pay for costs like teacher salaries and school building maintenance. It makes up a large chunk of most of a property owner's tax bill.
But Landgraf also said in order for these property tax cuts to be finalized, Proposition 4 would need to be voted for on the November ballot.