ATTENTION AUSTIN, TX – Texas Lt. Governor Dan Patrick and House Speaker Dade Phelan announced a landmark agreement on legislation that will provide the largest property tax cut in Texas history. The $18 billion tax relief package comes after months of negotiations between the Texas Senate and House.
Highlights of the tax cut plan include:
- Over $12 billion to reduce school property tax rates for homeowners and businesses by 10.7 cents per $100 valuation. This will lower tax bills for all properties.
- Increasing the homestead exemption for homeowners from $40,000 to $100,000, providing relief for 5.7 million Texas homeowners.
- A 3-year pilot program with a circuit breaker limiting tax growth to 20% for non-homesteaded properties valued under $5 million, including residential and commercial properties.
- Raising the franchise tax exemption from $1 million to $2.47 million, delivering savings for small businesses.
- Creating elected positions on local appraisal boards to give taxpayers more voice.
The omnibus property tax relief bill and a franchise tax cut bill will originate in the Senate, while a constitutional amendment enabling the tax cuts will be filed in the House. The goal is passage in both chambers this week.
Governor Greg Abbott praised the deal and promised to sign the historic legislation. If passed, the constitutional amendment would go before voters in November 2022 and take effect starting in 2024.