Property tax agreement finally forged
July 10, 2023 | Austin, TX
Here it is, Texans. The Senate and House have reached an agreement on property tax relief for beleaguered homeowners and business owners and here are the guts of it.
Over $12 billion will be spent on reducing the school property tax rate for all homeowners and business properties
Every homeowner who homesteads their home (approximately 5.7 million homeowners) will get a $100k homestead exemption.
Non-homestead properties, will receive a 20% circuit breaker on appraised values in a 3-year pilot project.
Legislation will also include savings on the franchise tax for small businesses and create newly elected positions on local appraisal boards.
The deal between Lt. Governor Dan Patrick and House Speaker Dade Phelan was struck during a recess period of the second special session. The call for the session by Governor Greg Abbott, specified only two specific charges: 1) property tax relief that focused only on rate compression or the abolition of the property tax system altogether.
However, the resulting legislation includes a significant rise in the homestead exemption from $40k to $100k, which Patrick favored and was passed unanimously by the Senate as soon as the second special session gaveled in. No word yet on what became of the unanimously passed amendment to the Senate bill to give teachers bonuses.
In the first special session that was focused on property tax relief, a kerfuffle erupted between Patrick and Phelan when each chamber of the legislature passed it’s own version of relief. Then, as the Senate planned to send the House version to their committee and waited for the House to assign it’s version to a House committee, Phelan adjourned the House and sent its members home.
The announcement of an agreement was made by Patrick this morning and Abbott responded with his intentions to sign the bill.
“I promised during my campaign that the state would return to property taxpayers at least half of the largest budget surpluses we have ever had. Today’s agreement between the House and the Senate is a step toward delivering on that promise. I look forward to this legislation reaching my desk, so I can sign into law the largest tax cut in Texas history,” said Abbott.
Dissent Over Property Tax Relief Agreement
As to be expected, not everyone is thrilled with the agreement reached between Lieutenant Governor Dan Patrick and House Speaker Dade Phelan on property tax relief for Texans.
Most notably, proponents of an abolition of property taxes altogether in favor of an alternative method of taxation are expressing disappointment that there was no such discussion in the backdoor meetings where the agreement was hammered out.
Legislation for the agreement has not yet been filed, so no detailed analysis is available, but the legislature is scheduled to reconvene tomorrow afternoon.
Meanwhile, Texans For Fiscal Responsibility Fiscal Responsibility Tim Harden takes issue with Governor Greg Abbott’s statement that this was the largest tax cut in Texas history.
“Today, Texas taxpayers received crumbs from the table from our governor. We have been promised the largest property tax cut in history, a path to elimination, and half of the surplus used to buy down school property taxes. Today, it was made clear that none of those are happening,” said Hardin..
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