Texas Lawmakers Reach Deal on $18 Billion Property Tax Cut Package

Texas GOP Lawmakers Reach $18 Billion Deal on Property Tax Cuts

After months of negotiations, Texas GOP lawmakers have finally reached a deal on cutting property taxes for Texans. The $18 billion compromise between the Texas House and Senate includes over $5 billion approved for property tax relief in 2019. This deal aims to lower taxes for the state’s 5.7 million homeowners and implement a temporary cap on appraisal increases for some non-homesteaded properties.

The proposal also includes cuts to franchise taxes for small businesses and provides billions of dollars to school districts to reduce taxes across the board. However, none of the money will go towards additional public education funding. The legislation must pass both chambers before heading to Governor Greg Abbott’s desk for approval. If approved by voters in a constitutional election in November, the cuts would start with the 2023 tax year.

Governor Abbott expressed his support for the deal, calling it the largest property tax cut in Texas history. Lt. Gov. Dan Patrick also praised the agreement, stating that it is a great day for all property owners. The bill allocates funds to reduce the school property tax rate, increase the homestead exemption, and provide relief for seniors and property owners with disabilities.

The proposed deal would save the average homeowner about 41.5% on property taxes each year, amounting to an average savings of $1,300 annually. While the plan does not include a targeted tax relief for renters, Republicans argue that renters will benefit indirectly from the tax cuts.

Overall, the deal marks the end of a long stalemate among Texas Republicans over how to distribute new tax breaks. The agreement addresses concerns raised by both chambers and aims to provide significant tax relief for Texans.