Republicans and Democrats from the Texas Legislature joined together on June 20 to adopt a new property tax relief bill in unanimity, more than three weeks after Governor Greg Abbott convened a special legislative session to lower property taxes.
The $18 billion plan would lower tax rates for school districts, raise homeowner exemptions, and lower taxes for small business owners.
Texas Legislature Against Time On Property Tax Reform
But with only one week left until the 30-day special session expires on June 28, it’s improbable that the Texas House will adopt the new scheme. Before a measure may be sent to the governor’s desk and become law, it needs to be approved by both chambers of the Legislature.
On May 30, the House passed a property tax bill that had received the governor’s approval, and the remainder of the special session was promptly adjourned.
Prior to this time, Abbott supported the House in the continuing property tax dispute. The latest measure, Senate Bill 26, according to lawmakers, would provide Texas’s homes and companies the biggest tax decrease in state history.
According to Lt. Gov. Dan Patrick, who is in charge of the Senate, this plan will reduce school taxes for homeowners by around 41%.
It will result in the largest tax break ever for businesses. The homestead exemption is maintained.
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Tax Consultant Senator Proposes Property Tax Relief
Sen. Paul Bettencourt, a Republican from Houston, said that the average homeowner will pay at least $1,270 less in property taxes the following year.
SB 26 was written by tax consultant and former Harris County tax assessor-collector Bettencourt, who also supported other bills to lower property taxes this year.
Additionally, SB 26 would increase the state franchise tax exemption, exempting companies with annual revenue of less than $2.47 million from having to pay this tax.
According to Bettencourt’s administration, this would exempt some 67,000 small and medium firms from the franchise tax.
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