Students are unlikely to see any benefits and could even be hurt by the state’s proposal to counterbalance the property tax rate cap with an increase in the state sales tax, experts say. However, in its current form, the tax swap also faces a potentially steeper battle than other tax proposals. The proposal would raise the state’s base rate sales tax by 1% while capping the property tax rate increase for local jurisdictions at 2.5% per year, unless it gets voter approval for a higher increase. Because people under 35 have the lowest rate of homeownership of any age group, according to the Census Bureau, Martin Luby, assistant professor of public affairs, said students will probably not receive any perks from the property tax increase cap. In theory, Luby said, a cap on the property tax rate increases could trickle down and result in better rent prices. But in a place like Austin, where demand drives rent up much more than property taxes, the chances of lower or slower rent increases are slim, Luby said.
For The Full Story: THE DAILY TEXANthe daily texan
by chase karacostas
april 24, 2019