Gov. Greg Abbott discusses property taxes, data centers during Sherman visit

SHERMAN, Texas (KXII) - Texas Gov. [KXII 12]
Gov. Greg Abbott visited a Sherman business establishment Thursday to address two issues likely to influence November's election: rapid expansion of data centers and concerns about living costs throughout the state.
During the stop in Grayson County, Abbott pledged to grant communities greater authority in determining whether data center projects should move forward locally. He explained that residents, working alongside municipal and county leaders, would shape infrastructure decisions reflecting their area's distinct priorities rather than accepting a one-size-fits-all approach across Texas counties.
Property tax reduction emerged as another centerpiece of the governor's message. Abbott acknowledged that while cities in Grayson County benefit from sales tax revenue, the county government depends almost entirely on property tax collections. When pressed about potential financial consequences if such taxes were reduced, Abbott emphasized the need to eliminate unfunded mandates imposed on municipalities and small towns, arguing this would generate substantial savings. He also noted that state spending limitations automatically adjust for inflation and population increases, providing a framework for managing resources.
State Rep. Shelley Luther, whose district includes the area, signaled that Republican lawmakers stood ready to align with the governor's priorities. "We are going to tackle these things. And I'm serious when I say the Republican Party has never been more united than it is right now," Luther said.
The Democratic opposition wasted no time responding. When asked about his opponent's calls for a debate, Abbott indicated he preferred direct community engagement. Texas Democratic Party spokesman Jacob Long subsequently released a statement characterizing Abbott as a career politician who had failed to deliver on affordability promises despite three decades in government. Long criticized the governor's record, claiming working families faced elevated costs for fuel and other essentials while wealthy donors received tax benefits and state contracts.
Meanwhile, a separate controversy surrounded Abbott's statewide suspension of new data center permits pending a comprehensive audit. Officials in Grimes County contended that TeraFab, a large planned facility in their jurisdiction, qualified for exemption because it functions as semiconductor manufacturing rather than a data center.
Coverage from 2 newsrooms
Terafab may not be impacted by Gov. Abbott's pause on data centers
Grimes County officials assert that the TeraFab chip manufacturing project is exempt from Gov. Abbott's statewide pause on new data center p…

Gov. Greg Abbott discusses property taxes, data centers during Sherman visit
Texas Gov. Greg Abbott visited Sherman to discuss data centers and property tax affordability ahead of the November election.
