While running for his third term in office, Texas Governor Greg Abbott vowed to lower property taxes for residents. After months of campaigning on this topic, last week the Texas legislature presented a bill to lower taxes. Let’s take a look at what they propose.
Both chambers want to lower school taxes by 10 cents and they set aside $15 billion for property taxes. Senate Bill 3 aims to increase the Texas homestead exemption from $40,000 to $70,000. This would save homeowner's property tax $756 in the first year and $798 in the following years according to the Austin American Statesman.
In the House, the proposed bill is different. House Speaker Dade Phelan proposed House Bill 2 which would reduce the state’s appraisal cap from 10% to 5%. The school district tax rate would decrease by 15 cents.
Representative Paul Bettencourt (R-Houston) proposed Senate Bills 3 and 4. He said:
“This type of tax relief is just unprecedented.”
Lieutenant Governor Dan Patrick is opposed to the House recommendation. Patrick believes this will have a negative effect on Texans.
But Lieutenant Governor Patrick gained support from both Republican and Democratic Senators to increase the homestead exemption.
He said in a recent interview:
“It’ll increase the homestead exemption for every homeowner in Texas to $70,000, and if you’re a senior 65 and older, it’s $100,000, unheard of!”
At the Senate Finance Committee, Dale Craymer of the Texas Taxpayers and Research Association said:
“There is no denying the fact that our school rates by 2025 will be half what they were at their previous peak and that is a tremendous accomplishment.”
As the Senate and House work things out, it is likely property taxes will be lower. The big question is how much is what Texans are waiting to hear.
Do you think your property taxes will get lowered?