The Texas Senate and House reached an agreement on a historic $18 billion property tax cut, according to a joint statement from Lt. Gov. Dan Patrick and Speaker Dade Phelan. Gov. Greg Abbott released a separate statement on the property tax relief agreement saying, “Today’s agreement between the House and the Senate is a step toward delivering on that promise. I look forward to this legislation reaching my desk, so I can sign into law the largest property tax cut in Texas history.”
The proposed legislation includes over $12 billion to be spent on reducing the school property tax rate for all homeowners and business properties. The legislation will also include savings on the franchise tax for small businesses and create newly elected positions on local appraisal boards. The $18 billion tax cut will include a $100,000 homestead exemption for all homeowners.
The omnibus property tax relief bill and the franchise tax relief bill will originate in the Senate, while a constitutional amendment will be introduced in the House. Both the House and the Senate will file legislation, with the goal of passing the bills coming later this week. Gov. Abbott tweeted he intended to sign the bill once passed.
The deal comes after a months-long stalemate between the House and Senate over how best to provide property tax relief to Texans. Gov. Abbott called a second special session on June 27, after House and Senate leaders failed to reach a compromise and pass any legislation during the first special session.