$18 billion property tax cut deal announced, biggest in Texas history
Photo: Julius Shieh (FOX 7 Austin)
AUSTIN, Texas - Following months of planning and the calling of a second special session, Texas lawmakers have reached yet another milestone regarding tax cuts.
Lt. Gov. Dan Patrick and Speaker Dade Phelan announced on Monday that an agreement had been reached to deliver an $18 billion cut in property taxes. The agreement details cuts to the school property tax rate, alongside relief for homeowners and small businesses.
"This agreement is a significant victory for all Texans," said Speaker Dade Phelan. "Reducing property taxes, providing relief to small business owners, and reforming our appraisal system will ensure economic growth and prosperity."
Property tax reductions include a program to cut school property tax rates, estimated to total over $12 billion. A homesteader tax exemption will also provide $100,000 in exemptions to the state's 5.7 million homesteaders, and non-homesteaders who own property valued under $5 million will be included in a tax-refund "circuit breaker" pilot program.
Additionally, promised legislation will provide small businesses with savings on the franchise taxes while also introducing new elected positions on local tax appraisal boards.
"It may have taken overtime, but the process has produced a great bill for homeowners and businesses," said Lt. Gov. Patrick.
The cuts will be filed on Monday and are expected to pass as bills in both the House and the Senate by the end of the week, according to a statement by Phelan's office. In a separate statement on Monday, the Governor expressed support for the bills.
"I look forward to this legislation reaching my desk, so I can sign into law the largest property tax cut in Texas history," said Gov. Abbott.