Texas second special session began today, focused on property tax relief
June 27, 2023 | Austin, TX
Round two of property tax relief began at 3 pm today, as the Texas Legislature was called back into another special session to deal with the issue that hit a wall in the first special session.
In special session #1, House Speaker Dade Phelan closed the House after passing HB 1, refusing to consider the Senate’s version, SB 1.
The House bill would have achieved property tax relief through rate compression only. The Senate version would have achieved relief through a combination of lower rates and a rise in the homestead exemption from $40k to $100k. Rate compression would extend to both residents and businesses, but could be adjusted again at any future legislative session. Homestead exemptions are permanent.
Governor Abbott’s Proclamation
This call by Governor Greg Abbott seems to follow along the lines of Speaker Phelan’s legislation, allowing only bills that achieve tax relief by tax rate compression or bills that would eliminate property taxes altogether.
The second special session proclamation includes:
ELIMINATING A PROPERTY TAX IN TEXAS: Legislation to put Texas on a pathway to eliminate school district maintenance and operations property taxes.
LASTING PROPERTY TAX RATE CUTS: Legislation to cut property tax rates solely by reducing the school district maximum compressed tax rate in order to provide lasting property-tax relief for Texas taxpayers.
Statement from Governor Abbott
“I am bringing the Texas Legislature back for special session #2 to provide lasting property tax cuts for Texans. During the five-month regular session, the Texas House and Texas Senate both agreed on cutting school district property tax rates, while the House wanted to add appraisal caps and the Senate advocated for increased homestead exemptions.
“Unless and until the House and Senate agree on a different proposal to provide property tax cuts, I will continue to call for lasting property tax cuts through rate reductions and working toward eliminating the school property tax in Texas. Special sessions will continue to focus on only property tax cuts until property tax cut legislation reaches my desk.”
Response from Lt. Gov. Dan Patrick
The Lt. Governor responded by announcing that the Senate will pass the same bill that they passed during the first special session.
“We will insist upon a homestead exemption, giving homeowners a $1,250 to $1,450 annual tax cut as opposed to receiving only $740 without a homestead exemption,” he said, adding that the bill passed by the Senate would give homeowners a $1,250 to $1,450 annual tax cut as opposed to receiving only $740 without a homestead exemption.
“Regarding the call to pass legislation to eliminate school property taxes all together, to do so would require increasing the sales tax dramatically, which clearly has no support from the legislature or the people,” he explained. “The only other pathway is using current sales tax dollars, which can never be achieved.
“The Governor mentions that cutting the tax rate is a lasting tax cut. It is not. As soon as sales tax flattens or declines in any year, property tax rates would skyrocket. The only tax cut that is lasting is a homestead exemption, which is locked into the Texas Constitution.”
No response has been posted by Speaker Dade Phelan yet.
The House and Senate are both set to convene tomorrow at 11 am when the second special session will begin in earnest.
Governor Greg Abbott
(512) 463-2000
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Lt. Governor Dan Patrick
(512) 463-5342 (message line)
(512) 463-0001 (office line)
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House Speaker Dade Phelan
(512) 463-1000
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Senator Brandon Creighton (SD 4)
(512) 463-0104 (Austin Office)
(281) 292-4128 (District Office)
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Senator Paul Bettencourt (SD 7)
(512) 463-0107 (Austin Office)
(713) 464-0282 (District Office)
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Senator Lois Kolkhorst (SD 18)
(512) 463-0118 (Austin Office)
(979) 251-7888 (District Office)
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Rep. Cecil Bell (HD 3)
(512) 463-0650 (Austin office)
(281) 259-3700 (District office)
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Rep. Steve Toth (HD 15)
(512) 463-0797 (Austin office)
(346) 220-0300 (District office)
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Rep. Will Metcalf (HD 16)
(512) 463-0726 (Austin office)
(936) 539-0068 (District office)
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Rep. Ernest Bailes (HD 18)
(512) 463-0570 (Austin office)
(936) 628-6687 (District office)
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