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Texas Governor signs state property tax cut
Texas top leaders gathered on Wednesday in the Houston area to celebrate legislation designed to save millions of Texas homeowners at least $1,300 a year. FOX 26 Political Reporter Greg Groogan tells us more about the "record debate" many of you will see reflected on your next tax bill.
HOUSTON - Calling it the "biggest property tax cut in the history of the world", Texas leaders and lawmakers gathered before the cameras in New Caney for a collective victory lap over the $18 billion they are refunding to millions of our state's landowners.
"We know whose money that is! That money belongs to the taxpayers and we are giving it back to the taxpayers of Texas," said Governor Greg Abbott.
"Most governments don't even have $18 billion and those who do have never cut their property taxes anywhere near that," said Lt. Governor Dan Patrick, leader of the Texas Senate.
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Amid the mutual congratulations, not a hint of the animus generated by months of brutal, mostly Republican back-and-forth over the cash distribution.
What ultimately emerged was a Senate-dominated plan which "permanently" raises the homestead exemption on school taxes from $40,000 to $100,000 per year, benefiting 5.7 million households.
The measure also eliminates the franchise tax for 67,000 Texas businesses while temporarily capping property appraisal rates in a move widely viewed as a significant concession to the House.
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"That means every home in this state gets a 41 percent reduction in one year," said State Senator Paul Bettencourt, a Houston Republican and author of the upper chamber's tax relief legislation.
House Speaker Dade Phelan underscored the enormity of the rebate by comparing it with a much more modest relief package approved in rival Florida.
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"The Florida delegation, including the House Speaker, were bragging about their $2 billion tax rebate. I wasn't going to say anything, but I said, that's cute. Everything is bigger in Texas, including our tax reform," said Phelan.
While the "homeowner focused package ultimately adopted differed from the more "corporate-friendly" option the Governor and many in the House preferred, the massive rebate represents the completion of a core pledge made in Abbott's reelection campaign.
Voters will get the final word in November with a constitutional amendment on the ballot.