Relief from rapidly rising school property taxes should be provided to all types of property and should not be limited exclusively to the owners of residential property. Business property should not be subjected to discriminatory practices or procedures. The state should ensure that funds provided to lower property taxes actually will achieve lasting property tax relief . In addition, the rollback provision for school taxes should be strengthened to prevent school districts from raising property taxes back to previous levels without voter approval. Targeted tax relief is an appropriate way to encourage investment and to promote continued economic prosperity .
Tax incentives are a common tool used by states to influence business investment decisions.
Texas should adopt prudent tax policies to promote economic development and to ensure a fair competition with other states for new investment. Tax policy is an effective tool to help mitigate the high mandated costs of new regulatory initiatives . In 1993 Texas voters approved a local property tax exemption for pollution control equipment. This exemption should be preserved to meet the purposes for which it was intended - to mitigate the high cost of environmental compliance. As extraordinary new investments are required to meet Clean Air Act standards, additional tax incentives should be considered to help Texas commerce be environmentally-friendly and compliant, and cost competitive with other states.