Up To $18 Billion Property Tax Relief in Texas; Senate Approved Largest Plan!

Texas Senate has approved its largest plan for property tax relief in Texas, amounting to $18 billion, to lower property taxes for homeowners across the state, KXAN reported.

Up To $18 Billion Property Tax Relief in Texas; Senate Approved Largest Plan! (PHOTO: The Texas Tribune)

Up To $18 Billion Property Tax Relief in Texas

The plan, authored by State Sen. Paul Bettencourt (R-Houston), aims to provide direct benefits to homeowners through an increased homestead exemption and significant tax rate cuts.

The proposed plan includes raising the homestead exemption to $100,000, which is a crucial point of contention between the Senate and Governor Greg Abbott. Additionally, the plan allocates an extra $400 million to reduce school district property tax rates, aligning with the governor’s preference for rate compression.

According to Sen. Bettencourt, combining an increased homestead exemption with tax rate cuts will provide substantial savings for taxpayers in Texas. He estimates that the average homeowner could save nearly $1,300 per year under the Senate plan.

By granting exemptions and reducing tax rates, the aim is to alleviate the burden on homeowners and stimulate economic growth.

However, there is still a stalemate between the Senate and the governor, who supports the House plan of rate compression. Abbott has emphasized the need to reduce taxes through rate compression and allocate more state funding to school districts, enabling them to lower their tax rates. The governor aims to eventually eliminate property taxes.

READ ALSO: Property Tax Relief Feud Between Abbott, Patrick Continues As Texas Governor Vetoes Senate Bills

Property Tax Relief in Texas

The spokesperson for Governor Abbott, Renae Eze, did not express openness to the new Senate proposal, emphasizing the governor’s preference for rate compression and urging the two chambers to find common ground.

As the special session comes to an end with no apparent agreement between the Senate and the House, Governor Abbott may call for another special session specifically focused on property tax relief.

The future of property tax relief in Texas remains uncertain, and it will require collaboration and compromise between the different branches of government to reach a solution that benefits homeowners and addresses the state’s fiscal needs.

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