Texas property taxes are among some of the highest in the country, with an effective tax rate of 1.6%. This means that the Lone Star State has the seventh-highest figures in the country, which means that the state takes around $80 billion annually from property owners.
Following calls to reduce these levies, lawmakers and other groups have been looking at ways to plug the gap it would leave behind. While there are fears that it would lead to higher sales tax, it could push the state to legalize casinos to be able to collect gambling taxes and may even pave the way for online gambling legislation.
Under current laws, online casinos are not regulated in Texas, and tribal casinos are the only physical casinos where residents can have a flutter. According to the Texas gambling guide by sports betting and casino writer Jonathan Askew, players must turn to offshore casinos to gamble.
There have been calls for the gambling industry to be further regulated within the state. According to one survey, 6 in 10 Texans support a move to introduce resort-style casinos, although the move has so far been rejected because of fears it would take revenue away from native casinos and the tribes that run them.
However, gamblers could get the support they need from lawmakers, as they discuss ways in which to try and further reduce the $80 billion a year tax bill paid by property owners in the state. The problem is set to be discussed next year, and various resolutions have been mooted. One idea is to increase the sales tax, but economists have said that the tax would have to be doubled to completely replace the money that is currently raised by property taxes.
Property tax is paid every year by property owners, with tax rates set by the state. Rates vary across the country and Texas, with a 1.6% rate, has the seventh-highest rate of any state. The tax does bring in $80 billion a year, but, understandably, residents aren’t keen on what amounts to a large sum of money every year.
Lawmakers are likely to discuss how to reduce the tax burden and are unlikely to scrap the levy altogether, but this would leave a large hole in the state coffers. Some support an increase in sales tax in the state to cover the difference, but this will affect everybody including lower-income families and those on financial support. Another idea could be to regulate casino gambling and tax it.
Currently, only tribal casinos are allowed in Texas, and these are not usually taxed by the government. The funds are used to finance tribal business and infrastructure. However, if the government were to allow resort-style casinos, they would be able to tax these and potentially raise at least some of the money lost by reducing property tax rates. If online gambling or sports betting were also allowed, this would increase potential tax revenues even further.
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