When it comes to taxes, the devil is often in the details.
We know that right here in the Twin Cities. The Arkansas-side has a state income tax exemption but that is paid for by an extra penny in sales tax
And on the Texas side there is no state income tax. But residents of the Lone Star State pay higher fees on things like annual vehicle registration.
Then there are property taxes. On the Arkansas side the rate is relatively low. But move to Texarkana, Texas, and you'll likely get a shock when the property tax bill comes due.
Texas is ranked No. 46 in highest property taxes by research firm WalletHub. That means residents pay more in property taxes on average than those in 45 other states.
The reason is that so many services depend on property taxes. Counties, cities and school districts each set rates and get a cut.
Gov. Greg Abbott wants to slow the growth of property tax rates. And on Tuesday he announced a proposal that limits taxing entities from raising tax rates that would result in revenue of more than 2.5 percent than they collected the year before. Anything higher would require approval by a two-thirds majority of the voters.
Sounds good. But even if the governor can get this past the Legislature, there is a catch.
The proposal does nothing about property assessments. So while the intent of the bill is to slow property tax growth, local entities could even cut taxes and property owners could wind up paying more if assessed values go up.
It probably won't go that far. The Republican Legislature has twice rejected similar property tax caps. And counties, cities and school districts are not going to be happy at all with the governor's intrusion. Since property taxes in Texas are the province of those entities, there is already speculation of a court challenge should the proposal become law.
Property taxes are high in Texas and here in Texarkana. But property taxes are just part of the picture. According to the Tax Foundation, Texans pay less of their income in total taxes than those in than many other states. Indeed, total income-to-tax ratio puts Texas among the lowest tax states. So while putting a cap on property levies would be nice, Texas-side residents can take comfort in that.