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Property tax relief compromise
Texas lawmakers have finally came to an agreement on how to deliver property tax relief to residents. Political reporter Greg Groogan shares details of this compromise and reactions.
HOUSTON - After months of debate and contentious negotiation, a massive property tax relief deal is done and more than 5.7 million Texas homeowners have reason to celebrate substantial future savings.
Central to the $18 billion plan funded by the State's surplus is a permanent increase of the amount of a homestead's value exempted from school district taxation - rising from the current $40,000 to a full $100,000, each and every year to come.
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The estimated annual savings for the average homeowner is $1,400 with seniors getting an additional discount to $1600.
Super Neighborhood Leader Tomaro Bells calls that "significant money," especially for working class families and those on fixed incomes.
"It will be greeted ecstatically. $100 a month may not seem like a lot to you, but you are talking about childcare. You are talking about milk. You are talking about diapers. You are talking about food. This makes a difference. I mean it really does," said Bell.
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Houston's Paul Bettencourt was Senate sponsor and principle architect of the agreement, which includes compromise measures capping appraisal value increases on some commercial and non-homestead properties at 20% for the next three years and eliminating permanently the state franchise tax currently paid by 67,000 small Texas businesses.
"This may be the record tax relief in modern history in the country. You are going to have savings that people have never dreamt of or seen. They are going to be astonished when they get their school tax bills," said Bettencourt.
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As for those Texans who would have preferred the legislature invest in strict caps on annual home appraisals, which sky rocked during the pandemic, Bettencourt offered this counsel.
"Yes, we have been through a huge up market, but we can't overreact to it, because you are not going to have 20% increases the rest of your life. It's just not possible," said Bettencourt.
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The compromise expected to draw near unanimous support later this week in both the State House and Senate.
Governor Greg Abbott has signaled his approval with Texas voters getting the final say at the ballot box in November.