Friday, June 14, 2024

Texas legislators unveil $18 billion property tax cut legislation

Texas Lieutenant Governor Dan Patrick and Speaker Dade Phelan on Monday issued a joint statement to announce an agreement on proposed legislation that will deliver the “biggest property tax cut in Texas history.”

Both leaders met last week in Austin and, along with members of the House and Senate, have continued working to reach a consensus.

The deal represents a “significant win for providing relief to Texas property owners and reflects the commitment of Texas leaders to address the concerns of taxpayers and provide significant relief from the burden of escalating property taxes,” according to a press release from the lawmakers.

Highlights of the $18 billion tax cut legislation include:

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 $100,000 homestead exemption.

Non-homesteaded properties, valued at $5 million and under, including residential and commercial properties, will receive a 20% circuit breaker on appraised values as 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.

“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,” said Speaker Dade Phelan. “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. I look forward to the passage of this package in the coming days and delivering on our commitment to the people of Texas.”

“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,” said Lt. Gov. Patrick.

Local representatives from Denton County offered their support:

“This legislative package lowers school property tax rates, creates a $100k homestead exemption, provides real relief on non-homesteaded properties, removes 67,000 small businesses from paying the franchise tax and creates elected positions on local appraisal boards all in an effort to show our commitment to hardworking Texas taxpayers,” said State Senator Tan Parker (R-Flower Mound). “I’m dedicated to bringing relief to Texas taxpayers and eagerly await voting for this legislation later this week. ”

Both the omnibus property tax relief bill and the franchise tax relief bill will originate in the Texas Senate and the constitutional amendment will be introduced as a House Joint Resolution. The Senate and House will file legislation today with the goal of passing the bills later this week. The proposal must clear both chambers before it heads to Gov. Greg Abbott’s desk.

CTG Staff
CTG Staff
The Cross Timbers Gazette News Department

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