Texas Lt. Governor delivers ultimatum on property tax relief
HOUSTON - Lt. Governor Dan Patrick, leader of the Texas Senate, has dug his line-in-the sand over property tax relief into a virtual trench.
"The people of Texas, 5.7 million homeowners every one of them deserve the biggest tax cut we can give them," said Patrick in Houston.
SEE ALSO: Texas: The Issue Is - The great property tax debate
With more than $17 billion already set-aside to lower taxes, Patrick favors raising the homestead exemption on every primary residence in Texas from $40,000 to $100,000 per year.
"The Senate plan will give every one of 5.7 million homeowners $1200 to $1400 in a tax cut. The House plan gives about $740 per homeowner," said Patrick.
The House, led by Speaker Dade Phelan, has countered with a measure that does not raise the homestead exemption, but instead extends a larger portion of the tax relief to businesses, corporations, and commercial property owners which Patrick claims would effectively cut the rebate for Texas homeowners in half.
"I'll be danged if the Senate is going to pass a bill that favors businesses and the top incomes in the most expensive houses over the average homeowner," said Patrick.
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Two weeks deep into a special session mired in stalemate, Patrick delivered what amounts to an ultimatum.
"Bottom line, if the homeowners don't get their $100,000 exemption and their $1,200 to $1,400 tax cut every year for the rest of their life, there will be no property tax cut for businesses," said Patrick. "I'm sick of this argument."
3 Republican leaders and the property tax reduction bill still stalled in the Texas legislature
The once joyful process of re-bating surplus tax dollars to Texans has eroded into Republican-on-Republican acrimony pitting House Speaker Dade Phelan and Governor Greg Abbott against Lt. Governor Dan Patrick, leader of the Texas Senate. The $17 billion dispute breaks down like this Patrick and the Senate want to raise the homestead exemption from $40,000 to $100,000 permanently. Speaker Phelan and the Governor want to cut Texas businesses and corporations in on the rebate by substantially paying down their share of local school taxes for at least the next two years.
Governor Greg Abbot says he favors the business-friendly House plan but has indicated he will sign a compromise deal that keeps his campaign pledge to rebate billions of surplus dollars to Texans.
A spokesperson for Phelan has not yet responded to FOX 26's request for comment.