Texas Property Tax Relief: Senate Passes New Bill To End Political Standoff

Texas Property Tax Relief

Previously engaged in a series of disagreements, Gov. Greg Abbott, Speaker Dade Phelan, and Lt. Gov. Patrick have now come together to support this bill.

The recently passed Senate Bill 26 offers an impressive $18 billion in property tax relief, surpassing the initially allocated budget by $400 million. State senators assure that the necessary funds are available to accommodate these relief measures.

Homeowners stand to benefit greatly from the bill, as homestead exemptions would rise to $100,000 for most homeowners, and to $110,000 for homeowners over the age of 65. These adjustments translate to substantial savings of nearly $2,600 for most homeowners in the first two years, and close to $3,000 for homeowners over 65 during the same period.

Additionally, the new bill doubles the business franchise tax exemption to approximately $2.5 million, effectively relieving 67,000 businesses from franchise tax obligations. Now that the Senate has successfully passed the bill, it awaits approval from the Texas House, which had previously passed its legislation with Abbott’s support but subsequently adjourned.

While both the Senate and House plans focus on reducing property tax rates and replacing them with state revenues, they differ on the inclusion of a provision to increase the homestead exemption.

READ ALSO: $1.19 Billion For Texas A&M University System Was Approved By The State Officials

Texas Property Tax Relief Proposal

Abbott has expressed his desire to gradually eliminate property taxes allocated to public schools, replacing them with state revenues. However, Lt. Gov. Patrick has voiced his reservations about the feasibility of such a proposal.

To proceed, the bill must be agreed upon by both chambers within the next six weeks to meet the deadline for placement on the November ballot. The tax cuts, if approved, will be retroactive and apply to the current year.

Lt. Gov. Patrick urges the Texas House to reconvene and pass the bill, while also calling on Gov. Abbott to consider and support the Texas property tax relief bill. The involvement and cooperation of all parties involved are seen as essential to achieving the desired outcome and providing much-needed Texas property tax relief.

READ ALSO: Texas House Tax Cut Package Criticized By Lt. Gov. Patrick; “They Just Need To Come Back.”