$17 billion tax relief standoff rages on at State Capitol
HOUSTON - A bona fide stand-off at the State Capitol over how best to deliver $17 billion in relief to citizens weary of rising property tax.
Lt. Governor Dan Patrick and the Texas Senate have proposed permanently raising the homestead exemption from $40,000 to $100,000.
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"The homestead exemptions helps all 5.7 million homeowners wherever they are in the state, every time, no matter what ever happens to their value, that homestead exemption keeps them from paying a tax," said State Senator Paul Bettencourt.
The House has approved a much different measure - a plan which buys down local school taxes property for not just homeowners, but Texas businesses and corporations as well, although the break would likely last no longer than next two years.
"Small businesses around Texas are the economic engine. They continue to create jobs expand and grow, and I think they deserve property tax relief as well. They pay a significant share of it," said Dustin Burrows, a State Representative from Lubbock.
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Governor Abbott has jumped into the fray in favor of the House plan citing the public support of more than 30 business associations.
Ironically, not a penny of the relief lawmakers are attempting to dole out was generated by levies on property, a fact delivered by Speaker Dade Phelan back in December.
"Let me just remind you, none of this money came from property taxes. It all came from sales tax," said Phelan speaking in Houston about the surplus.
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Rice political analyst Mark Jones says if Lt. Governor Patrick doesn't get at least some increase in the homestead exemption, there could be a substantial political price to pay for those who blocked it.
"A key constituency in the Republican primary are homeowners age 65 and older. That's the group that benefits most from the Patrick plan and least from the Phelan plan," said Jones.
Texans who do not own a home or property are unlikely to benefit from the $17 billion slated for relief despite having contributed mightily to the surplus by paying sales tax.