Homestead Exemption Increase And Teacher Pay Raise; Texas Senate Advanced A Tax Relief Proposal!

Homestead Exemption Increase And Teacher Pay Raise Advanced In The Senate

The House and Senate have been engaged in a prolonged debate over how to deliver property tax relief, with the Senate advocating for higher homestead exemption increases and the House pushing for a reduced cap on annual property appraisal increases. Despite failing to reach an agreement during the regular session, Governor Greg Abbott called for a second special session to address this issue.

An amendment to Senate Bill 1, the Senate’s tax relief plan, proposes compressing the school district property tax rate and raising the state’s homestead exemption to $100,000. In addition, the amendment seeks to grant a $2,000 pay increase to teachers in urban districts and a $6,000 increase to teachers in rural areas over the next two years.

The amendment, proposed by Senator Roland Gutierrez, was unanimously supported by all 31 senators after a lengthy discussion. The amendment is expected to add $3.2 billion to the Senate’s $18 billion property tax relief proposal.

Senator Gutierrez emphasized that the legislation falls within the scope of Governor Abbott’s special session proclamation, asserting that the governor has the constitutional authority to outline the issues to be addressed but not dictate the lawmakers’ actions.

While the Senate demonstrated unity in passing the amendment, the prospects of reaching an agreement on property taxes between the House and Senate are uncertain. It is also unclear how the House will respond to the inclusion of a pay raise for educators in the contentious property tax plan. Lieutenant Governor Dan Patrick reached out to House Speaker Dade Phelan, expressing the importance of an in-person meeting to resolve the differences.

READ ALSO: Homestead Exemption: What It Is, How It Works

Homestead Exemption Increase And Teacher Pay Raise

In the first special session, Governor Abbott focused on reducing school property tax rates, while the House proposed a plan that allocated all $17.6 billion in the state’s budget to property tax relief through tax compression. The Senate persisted in advocating for an increased homestead exemption, resulting in no deal being reached.

Senator Paul Bettencourt, the Senate’s lead on property taxes, emphasized that the combination of rate compression and an increased homestead exemption would provide substantial benefits to Texans. He hopes for unanimous support from both the Senate and the House for the proposed bill and joint resolution.

If passed, the amendment would require approval from voters through a constitutional amendment in November. Governor Abbott reiterated his commitment to property tax relief and stated that special sessions would continue until property tax cut legislation is enacted.

The second special session holds the potential for progress in addressing property tax relief in Texas, and it remains to be seen how the House and Senate will find common ground on this critical issue.

READ ALSO: Property Taxes Impasse In Texas: Gov. Abbott Appears To Softened His Insistence