AUSTIN — Speaker of the House Rep. Dade Phelan has announced the formation of a new committee to consider property tax relief, and Lt. Gov. Dan Patrick has announced the passage of a relief plan in the Senate, as the standoff between the two chambers of the Texas Legislature continues.
In a statement released on Twitter, Phelan (R-Beaumont) said, “Today I am announcing the Select Study Committee on Sustainable Property Tax Relief. Composed of 13 house members & 3 public members, the cmte will consider issues that broadly affect property taxes and make recommendations for long-term, sustainable relief for TX property owners.”
Phelan continued, “The House is the only chamber to pass prop tax relief that is germane to @GovAbbott’s call & we have voted on the largest prop tax cut in state history 3 times now. As we wait for the Senate to follow the House’s lead, we are taking a proactive step to tackle what comes next.”
The select committee is tasked with “[e]valuating the dynamic effects of tax rate compression, limits on taxable value, and homestead exemption increases to maximize savings to property owners.”
Furthermore, the group will spend time “[s]tudying the viability and sustainability of eliminating maintenance and operations taxes by 2035” and “[e]xamining historical rates of appraisal increases and recommending methods to reduce the tax burden of appraisal increases on all real property.”
Lastly, Phelan charged the committee with “[e]xamining the long-term value of homestead exemptions to Texas homeowners in conjunction with the impact of appraisal increases.”
The select committee will be chaired by Rep. Morgan Meyer (R-Dallas) with Rep. Shawn Thierry (D-Houston) acting as vice-chair.
Other members include Reps. Steve Allison (R-San Antonio), Dustin Burrows (R-Lubbock), Mano DeAyala (R-Houston), Donna Howard (D-Austin), Janie Lopez (R-San Benito), Candy Noble (R-Lucas), Richard Peña Raymond (D-Laredo), Hugh Shine (R-Temple), Ellen Troxclair (R-Austin), Chris Turner (D-Grand Prairie), and Armando Walle (D-Houston).
The committee will also include Cheryl Johnson, Brad Livingston, and Don “Skeeter” Miller as public members.
The committee composition received a mixed response.
Tim Hard, the CEO of Texans for Fiscal Responsibility, tweeted, “@DadePhelan announces a Select Study Committee filled with taxpayer enemies to discuss how to help taxpayers.”
On the other hand, Rep. Turner thanked Phelan, writing, “I appreciate being appointed to this new select committee by Speaker Phelan.”
“Property taxes in Texas are high. Reducing the property tax burden on my constituents while also ensuring we properly fund our public schools is a priority,” he added. “Looking forward to the work.”
At the same time that Phelan announced the new committee, the Senate pushed through two unanimous legislative items for property tax relief by Sen. Paul Bettencourt (R-Houston), including a $100,000 homestead exemption, compression, and franchise tax exemption.
Senate Bill 26 and Senate Joint Resolution 2 would, taken together, enact a multifaceted plan for property tax relief that includes some of the methods preferred by the Senate, the House, and Gov. Greg Abbott.
“I move passage of the largest tax cut in Texas’ history,” Bettencourt said on the floor.
“It would be the largest tax cut in world history,” Lt. Gov. Patrick interjected.
The items passed unanimously and in a press conference immediately afterward, Patrick reiterated, “This is really a historic day because the Senate just passed the largest tax cut in the history of the world, 18 million dollars.”
“We want, in all sincerity the Texas House to return and pass this bill,” he continued. “We ask our colleagues in the house to come back.”
Sen. Bettencourt then took the podium, laying out the various aspects of legislation and calling the plan “eye-popping.”
Emphasizing the benefits the Senate plan would purportedly provide to homeowners, businesses, and communities, Bettencourt added, “It’s simply the best tax package that we have produced.”
“When you have this kind of agreement of your Senate colleagues it speaks volumes,” he concluded, standing in the small press conference room with all the senators present standing alongside him.
Sen. Royce West (D-Dallas) added, “You see Democrats and Republicans standing here today. Sure, there have been issues that we have disagreed on, but this is an issue we all agree upon.”
“It takes determination, it takes courage, it takes political will,” Sen. José Menéndez (D-San Antonio) added in reference to the standoff between the chambers. “Texans shouldn’t be renting their houses from the government.”
Sen. Lois Kolkhorst (R-Brenham) said, “Overall this package is very thorough and very large. … I believe in our House colleagues that we can come together and really do something great.”
As Patrick was about to end the press conference, Sen. John Whitmire (D-Houston) jumped up to the podium, saying, “I want to thank the House for bringing the Texas Senate together,” eliciting a laugh from the room.
“But enough’s enough,” the dean of the Senate said. “We’ve got to come back together and support property tax reductions. It’s time for the House and the Speaker to come back to Austin.”
“Speaker, come back to Austin and look at the unity here,” he concluded, pointing to the unanimous support of the Senate.
Returning to the podium, Patrick added, “I would ask that Gov. Abbott take a serious look at this package and support this package.”
“Under this plan, roughly 71% would go to compression,” he added, noting that so much of the plan was allocated to compression because it was the form preferred by the governor. However, he warned, “These members are not going to give up the homestead exemption.”
Referring to the House’s select committee, Patrick said, “I’m glad to see that they are going to come back and get to work.”
“There are a number of members of the House working with the Senate on behalf of the Speaker,” he added. “Hopefully they will sign this bill.”
As time runs out for the first special session, Gov. Abbott has taken a hard-line stance on property taxes, vetoing bills supported by Sen. Bettencourt and others in an attempt to pressure the Senate into passing the plan preferred by the House, as reported by The Dallas Express.
Renae Eze, a spokeswoman for Gov. Abbott, responded to the Senate plan saying, “The Governor has been clear that his goal is to put Texans on a pathway to eliminate their school M&O property taxes, and the best way to do that is to devote all property tax relief to cutting property tax rates.
“The Governor has also been clear that the only way a property tax bill gets to his desk is for the Texas House and Texas Senate to agree to a bill and get it to the Governor’s desk, and he encourages the two chambers to work towards a solution,” she concluded.
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