AUSTIN, Texas — The Texas Senate and House reached an agreement on a historic $18 billion property tax cut.
Texas Lt. Gov. Dan Patrick and House Speaker Dade Phelan issued a joint statement to announce the agreement on the proposed legislation that will be “the biggest property tax cut in Texas history.”
Phelan thanked Patrick, as well as recognized the diligence of the House in his statement:
Patrick thanked Phelan, and gave special recognition to Sen. Paul Bettencourt (R-Houston) in his statement:
“I started working to reduce property taxes at a Capitol hearing in 2003, 4 years before I was elected to the Texas Senate. It has been a long road, but this is a great day for all property owners. Speaker Phelan and I worked diligently together over the last week on the final bill. It made the difference. It may have taken overtime, but the process has produced a great bill for homeowners and businesses. I thank all 31 Senators for working together and being patient through this process. I especially thank Sen. Paul Bettencourt, who was with me on that first bus trip to Austin 20 years ago, for his tireless work on this issue.”
Gov. Greg Abbott released a separate, subsequent statement on the property tax relief agreement:
“I promised during my campaign that the state would return to property taxpayers at least half of the largest budget surplus 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 property tax cut in Texas history.”
The $18 billion tax cut will include:
- Over $12 billion to be spent on reducing the school property tax rate for all homeowners and business properties.
- A $100,000 homestead exemption for homeowners.
- A 20% circuit breaker on appraised values as a three-year pilot project for non-homesteaded properties, valued at $5 million and under, including residential and commercial properties.
- Savings on the franchise tax for small businesses and the creation of newly elected positions on local appraisal boards.
Both bills – the omnibus tax relief bill and the franchise tax relief bill – will originate in the Texas Senate and a constitutional amendment will be introduced in the House as a House Joint Resolution (HJR).
The legislation will be filed in both chambers on Monday, with both aiming to vote on the bills later this week.