Texas property tax relief: State leaders reach agreement
AUSTIN (CBSNewsTexas.com) – Texas Lt. Gov. Dan Patrick and House Speaker Dade Phelan have reached an agreement on proposed legislation that they say would deliver the largest property tax cut in the history of Texas.
In a joint statement Monday morning, the leaders announced their successful collaboration following a meeting in Austin last week, where they, along with members of the House and Senate, worked to find common ground.
$18 billion tax cut legislation highlights:
-More than $12 billion will be allocated to reducing the school property tax rate for all homeowners and business properties.
-The homestead exemption for school property taxes will be raised to $100,000
-Non-homesteaded properties valued at $5 million and below, including residential and commercial properties, will get a 20% circuit breaker on appraised values as a 3-year pilot project.
-The legislation includes savings on the franchise tax for small businesses and will establish newly elected positions on local appraisal boards.
"Reducing property taxes, providing relief to small business owners, and reforming our appraisal system will ensure economic growth and prosperity, and this agreement is a significant victory for all Texans," Phelan said in the statement. "Negotiations with the Lieutenant Governor have been extremely productive, and by coming together and finding common ground, the House and Senate are one step closer to providing much-needed, much-deserved relief."
"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," Patrick said in the statement.
Late Monday morning, Gov. Greg Abbott announced his support for the compromise.
"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," his statement said.
The Texas Senate will serve as the starting point for both the omnibus property tax relief bill and the franchise tax relief bill, while the constitutional amendment will be presented as a House Joint Resolution. Phelan's statement said, the Senate and House are expected to submit the proposed legislation later this week.
