Lawmakers agree on biggest property tax cut in Texas history

The Texas House and Senate have reached an agreement on an $18 billion plan to provide property tax relief in the state. The deal includes reducing the school property tax rate, increasing the homestead exemption, and providing relief for small businesses. The legislation is expected to be filed and passed later this week, and Governor Greg Abbott is expected to sign it into law. The plan is being hailed as the “biggest property tax cut in Texas history.”

Under the agreement, over $12 billion will be allocated to reduce the school property tax rate for homeowners and business properties. Every homeowner who homesteads their home will receive a $100,000 homestead exemption. Non-homesteaded properties valued at $5 million and under, including residential and commercial properties, will benefit from a 20% circuit breaker on appraised values as a three-year pilot project. The legislation also includes franchise tax relief for small businesses and the creation of newly elected positions on local appraisal boards.

The agreement represents a significant win for Texas property owners and demonstrates the commitment of state leaders to address taxpayers’ concerns. The deal comes after weeks of disagreements between the House and Senate, but negotiations between Lieutenant Governor Dan Patrick and House Speaker Dade Phelan were described as “extremely productive.” Both chambers will introduce the omnibus property tax relief bill, with the constitutional amendment to be introduced as a House Joint Resolution.

The legislation aims to provide significant relief to homeowners and businesses, with average savings of between $1,200 and $1,500 per household. It is seen as a major step toward economic growth and an incentive for businesses considering Texas as a place to establish themselves. The plan is expected to have a noticeable impact on property tax bills and is being hailed as a major property tax relief initiative.

In addition to the current agreement, the House has also established the House Select Study Committee on Sustainable Property Tax Relief to consider long-term, sustainable property tax relief options for Texas property owners. The committee will evaluate various factors and make recommendations to maximize savings and reduce the tax burden on real property.