Texas Governor Greg Abbott has announced his reelection campaign, placing property tax reform at the center of his platform. This comes as no surprise, as Texas—like many other states—continues to navigate the complexities of property tax reform. Most recently, the Texas Legislature convened in a special session to address the issue, though it ended without reaching a deal on property taxes.
In his announcement, Governor Abbott stated that high property taxes are directly impacting affordability for Texas families. Building on the momentum of several recently passed pro-taxpayer measures, he hopes to implement a permanent reform solution that provides much-needed relief.
State policymakers across the nation are struggling to address property tax reform, but Governor Abbott is moving in the right direction. He understands that the root of the problem is government spending. As economist Arthur Laffer reminds us, “Government spending is taxation, pure and simple.”
“The first thing we must do is stop the out-of-control spending that leads to property tax increases,” Abbott said. He added, “Local governments must live within their means—just like you.”
To limit local government spending, Governor Abbott is proposing a fiscal rule that caps local spending growth at 3.5% or the combined rate of population growth and inflation, whichever is lower.
As an additional taxpayer protection, he is also proposing a requirement that property tax increases be approved by a two-thirds vote of the people before implementation. This would make it much more difficult for local governments to raise property taxes and would force them to justify any proposed increases.
Governor Abbott also wants to empower Texans to push back against excessive taxation. He has proposed allowing taxpayers to lower their property tax bills through a “rollback election.” If 15% of registered voters sign a petition, it would trigger an election to roll property tax rates back to prior levels.
These reforms would make it harder for local governments to increase spending and would compel them to explain why new spending requires higher taxes. The two-thirds voter approval requirement would also “counter the long-standing pattern of local governments exploiting technical loopholes—such as issuing new debt or claiming ‘disaster exceptions’—to avoid direct accountability.”
The local government spending limitation, combined with the two-thirds requirement and rollback provision, would help ensure real spending restraint.
The governor’s plan also includes reforms addressing property valuations and capping valuation growth at 3%, similar to Iowa’s rollback. However, the key takeaway from Abbott’s proposal is his correct understanding that meaningful property tax relief cannot occur without controlling local government spending.
Governor Kim Reynolds has repeatedly stated that property tax reform will be a top policy priority during Iowa’s 2026 legislative session. Policymakers in Iowa should take notice of Governor Abbott’s ideas and focus their efforts on limiting local government spending.
A potential blueprint for property tax reform in Iowa could include:
These reforms would not only rein in local government spending but also improve transparency by giving taxpayers more meaningful information. Finally, encouraging local government consolidation, shared services, and budgeting reforms are all valuable ideas—but if spending remains unchecked, taxpayers will see little lasting relief.
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