At a March Commissioners Court meeting, Bexar County manager David Smith and his team revealed that the number of properties with tax exemptions increased by 50,000 since last year, resulting in less revenue for the county.
“A lot more properties were able to access that exemption compared to last year,” Tanya Gaitan, Bexar County budget manager, said. “That is about $10 billion lost in property values, which is pretty significant.”
Property taxes make up 80% of the county’s general fund. Gaitan said the property tax exemptions that Texas voters approved in the fall will take their toll.
“The most significant one was they expanded the business personal property,” Gaitan said.
The law allows Texas businesses to exempt up to $125,000 in personal property taxes annually.
“They also expanded widows for disabled vets, so they have access to exemptions as well,” Gaitan said.
Jon Taylor, a political science professor at the University of Texas at San Antonio, says property evaluations had state government pivoting.
“This is why state legislature pushed to try to raise the exemptions, tried to push for some relief on some property taxes,” Taylor said. “That in turn is having a downward pressure on local government, particularly city, county and school districts.”
The county is forecasting a $145 million budget deficit by 2029. Taylor said that if this prediction rings true, tough decisions will have to be made.
“[Instead of] a county park being open seven days a week, it might only be open four days a week,” Gaitan said. “Same with swimming pools with the city.”
Both Taylor and Gaitan say it hasn’t gotten to that point yet.
“Services are going to remain the same: county parks, the roads, the flood projects,” Gaitan said. “Our major expense is the criminal justice system locally. Our jail, our sheriff’s office, the constables, the courts.”
But things could change come July 25, when the county receives all the data from property tax protests.
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