In the midst of a second special session called on the issue, Speaker Dade Phelan and Lt. Gov. Dan Patrick announced that the two chambers have reached an agreement for property tax relief.
In a joint statement, the two politicians laid out “an agreement on proposed legislation that will deliver the biggest property tax cut in Texas history.”
“Both leaders met last week in Austin and, along with members of the House and Senate, have continued working day and night to reach a consensus,” the release claimed. “The deal represents a significant win for providing relief to Texas property owners and reflects the commitment of Texas leaders to address the concerns of taxpayers and provide significant relief from the burden of escalating property taxes.”
Elements of the compromise plan largely reflect the items proposed by Patrick and the Texas Senate, such as an increase of the homestead exemption to $100,000.
Other elements include $12 billion for school property tax compression and “savings on franchise tax for small businesses and create newly elected positions on local appraisal boards.”
Speaker Phelan (R-Beaumont) said, “Reducing property taxes, providing relief to small business owners, and reforming our appraisal system will ensure economic growth and property, and this agreement is a significant victory for all Texans.”
Phelan highlighted the role of Reps. Morgan Meyer (R-University Park) and Will Metcalf (R-Conroe) for their role in negotiating the deal. The speaker also thanked “all the dedicated members of the House who worked tirelessly behind the scenes to help us reach a consensus”
“The Texas House will soon do its part to deliver historic property tax relief,” Phelan continued. “Negotiations with the Lieutenant Governor have been extremely productive, and by coming together and finding common ground, the House and Senate are one step closer to providing much-needed, much-deserved relief.”
For his part, Lt. Gov. Patrick highlighted the agreement as the culmination of more than 20 years of activism on behalf of Texas taxpayers.
“I started working to reduce property taxes at a Capitol hearing in 2003, 4 years before I was elected to the Texas Senate,” he explained. “It has been a long road, but this is a great day for all property owners.”
“Speaker Phelan and I worked diligently together over the last week on the final bill,” he added. “It made the difference. It may have taken overtime, but the process has produced a great bill for homeowners and businesses.”
“I thank all 31 Senators for working together and being patient through this process. I especially thank Sen. Paul Bettencourt, R-Houston, who was with me on that first bus trip to Austin 20 years ago, for his tireless work on this issue,” Patrick concluded.
Throughout the 88th Legislative Session, the first special session on property tax relief, and the ongoing second special session, the Senate has walked lock-step on the issue, repeatedly passing packages unanimously, as reported by The Dallas Express.
The House, under the leadership of Speaker Phelan, spent many weeks adjourned and refusing to consider the Senate’s plan. Dissent began breaking out within the House, however, as groups of representatives began presenting their own plans.
Notably, local veteran Rep. John Bryant (D-Dallas) led a coalition of House Democrats to suggest a plan that also included an increase in the homestead exemption, as reported by The Dallas Express.
The news of the compromise was met with celebration among certain members, with Rep. Jared Patterson (R-Frisco) saying, “Texans deserve maximum tax relief and this bill does just that with the largest state tax cut in United States history. … This is a huge win for all Texas taxpayers.”
In a statement, Gov. Greg Abbott said, “I promised during my campaign that the state would return to property taxpayers at least half of the largest budget surplus we have ever had.”
“I look forward to this legislation reaching my desk, so I can sign into law the largest property tax cut in Texas history,” he concluded.
Others demurred, however.
Tim Hardin, CEO of Texans for Fiscal Responsibility, reacted, “So ultimately taxpayers will receive relief, but it looks like they have killed the idea of eliminating property taxes in the short term.”
“We will not stop until property rights are restored to all Texans,” he continued. “Get ready to push for elimination in the 89th!”
