Conservative and liberal tax policy experts said Abbott’s proposal would lead to higher housing costs and tax benefits flowing disproportionately to wealthy homeowners.
Texas cities and counties already face limits on how much revenue they can generate. Local leaders have warned that further restrictions would mean fewer services like parks and libraries.
While Ken Paxton did not allege any wrongdoing, his move is intended to enforce a new law that prevents cities from raising property taxes if they fail to follow transparency requirements.
The governor must first win over lawmakers who have rejected similar proposals. The state may have to backfill more than $17 billion for school funding alone.
As the state’s population grows, more travel options are needed in rural and smaller urban areas and between major cities, according to a draft of the first-of-its-kind plan.
Economic uncertainty, inflation, strict state limits on property tax collections and uncertainty around future federal funds have crimped local budgets.