Texas Legislative Special Sessions: Sanity or Insanity?
June 3, 2023 | Austin, TX
No sooner had the gavel pounded a close to the 88th regular session of the Texas Legislature than they gaveled back in again for the first in what is expected to be a series of special sessions called by Governor Greg Abbott.
First special session
The first special session call was to cover two items: property tax relief and border security.
The Governor’s property tax call was listed as follows:
“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.”
On border security, the call was limited to:
“Legislation solely for the purpose of increasing or enhancing the penalties for certain criminal conduct involving the smuggling of persons or the operation of a stash house.”
Dispute over property tax relief
After the end of the regular session, a meeting on property tax legislation occurred between Governor Abbott, Speaker of the House Dade Phelan, and Lt. Governor Dan Patrick. It resulted in an intriguing tweet from the Lt. Governor, who commented that Speaker Phelan had “left a meeting in a huff, killing the largest tax cut in history.” However, the other shoe was yet to drop.
Both chambers immediately swung into action with the House displaying a sense of urgency unseen during the regular session. The ensuing activity further revealed the dispute between Speaker Phelan and Lt. Governor Patrick with Governor Abbott apparently supporting Speaker Phelan’s plan.
Senate passes their proposed solution, SB 1
The Senate acted swiftly, producing Senate Bill 1 that combines savings derived two-thirds from compression and an additional third from an increase in homestead exemptions. Compression reduces the tax rate you pay with the state paying the balance. Current homestead exemptions are at $40,000 and the Senate bill ultimately proposed to raise them to $100,000.
The combination would provide more property tax relief, according to Lt. Governor Patrick, and the exemptions are permanent, whereas compression can be changed in any future sessions. Additionally, savings from exemptions inure entirely to homeowners, whereas compression rates are spread among businesses, investors, and trusts, as well.
Once the Senate bill passed and hit the House, Speaker Phelan refused to assign it to a committee, saying it was not germane to the call. As described above, the Governor’s special session proclamation specified legislation to “cut property-tax rates solely by reducing the school district maximum compressed tax rate.” Since SB 1 combined compression and homestead exemptions, Speaker Phelan claimed that the bill was invalid for the purposes of the special session.
House responds with HB 1
In very short order, the House passed their own property tax relief bill, House Bill 1, and immediately adjourned the special session sine die, meaning that their special session has ended without further plans to meet. This move forces the Senate to decide whether to pass the bill without the ability to work out any differences with an absent House.
HB 1 relies solely on compression of rates to achieve relief from soaring property taxes. Although the bill is in line with Governor Abbott’s special session call to pass legislation to “cut property-tax rates solely by reducing the school district maximum compressed tax rate,” Lt. Governor Patrick objected to HB 1 on the grounds that taxpayers would lose out on significant property tax relief.
“Homeowners would lose nearly $700 a year under that plan,” the Lt. Governor said. “This is not acceptable to the Senate. Compression plus Homestead Exemption is the path for the biggest tax cut in history. All compression is not.”
The Senate remains in special session, but the likelihood of them passing HB 1 seems slim considering the Lt. Governor’s further comments:
“If the House thinks after abandoning the Capitol, and walking out on the Special Session, the Senate is going to pass their “take it or leave it” property tax bill without a homestead exemption, they are mistaken. The Senate is still working. The House can return. Our bill legally fits the call. Our bill is simple – dedicating about 70% of the $17.6 billion to compression for all properties, with the remaining 30% going to a $100K homestead exemption. The House already unanimously passed the homestead exemption in the regular session; now the House All-Compression Plan takes the homestead exemption away.”
HB 1 was received by the Senate during their special session on Fri., June 2, but no action was taken. They will meet again on Tues., June 6.
Voters calling for property tax relief loudly and often
Texas has some of the highest property tax rates in the country, according to the Conservative Tax Foundation. The issue is certainly an important one for overburdened homeowners, especially in an environment where evacuees from other states and countries are flowing into Texas and appraisal values are going through the roof.
What is also interesting about this issue is that it pulls back the curtain on some of the back-room negotiations that have occurred in Austin and the alliances that have developed.
Border security bills
The second basis for the special session call, dealing with the human smuggling aspects of border security, resulted in the passage of HB 2 by the House on May 30.
HB 2, by Representative Ryan Guillen (R, HD 31) and sponsored by Senator Pete Flores (R, HD 24), relates directly to Governor Abbott’s call for border legislation focused on “increasing or enhancing the penalties for certain criminal conduct involving the smuggling of persons or the operation of a stash house.” The bill was delivered to the Senate on June 2.
During the Senate’s June 2 special session meeting, the following border security bills were referred to the Senate Border Security Committee:
SB 2 by Birdwell, creating a criminal offense for improper entry from a foreign nation;
SB 8 by Birdwell, addressing public safety threats presented by transnational criminal activity, including by establishing a Texas Border Force and making funds available to certain governmental entities;
SB 5 by Flores, relating to the punishment for certain criminal conduct involving the smuggling of persons or the operation of a stash house, increasing criminal penalties;
HB 2 by Guillen (sponsored by Flores), relating to the punishment for certain criminal conduct involving the smuggling of persons or the operation of a stash house, increasing criminal penalties.
The Senate is adjourned until Tues., June 6, when they will hold public hearings on each of these bills.
Upcoming special sessions
The special session episodes are not over. Governor Abbott has announced that there will be several additional sessions called to deal with the unfinished business of the 88th Texas Legislature and there are certainly many issues left unattended. In a regular session marked by the slow and unproductive nature of work in the House, it was remarkable to watch how quickly and efficiently they passed Speaker Phelan’s chosen legislation on the property tax issue.
We await the next announcements of Governor Abbott, one of which is reported to deal with SB 8, the School Choice Bill by Senator Brandon Creighton. Stay tuned to our Legislative Alerts page for developments as they occur.
Sen. Brandon Creighton (Dist. 4)
(512) 463-0104 (Austin Office)
(281) 292-4128 (District Office)
Send an email
Senator Paul Bettencourt (Dist. 7)
(512) 463-0107 (Austin Office)
(713) 464-0282 (District Office)
Send an email
Sen. Lois Kolkhorst (Dist. 18)
(512) 463-0118 (Austin Office)
(979) 251-7888 (District Office)
Send an email
Rep. Cecil Bell (Dist. 3)
(512) 463-0650 (Austin office)
(281) 259-3700 (District office)
Send an email
Rep. Steve Toth (Dist. 15)
(512) 463-0797 (Austin office)
(346) 220-0300 (District office)
Send an email
Rep. Will Metcalf (Dist. 16)
(512) 463-0726 (Austin office)
(936) 539-0068 (District office)
Send an email
Rep. Ernest Bailes (Dist. 18)
(512) 463-0570 (Austin office)
(936) 628-6687 (District office)
Send an email