Renters excluded from Texas property tax cut deal, for now

New property tax deal in place

State lawmakers returned to Austin with a new property tax deal in place. The deal breaks a long stalemate between the House and Senate, and it does not include a break for renters.

AUSTIN, Texas - State lawmakers made a brief appearance in Austin Tuesday to mark what they hope is the official end to the Texas property tax cut stalemate.

"Members, the Senate plans to take up the tax bills tomorrow," said House Speaker Dade Phelan before sending the House into a recess until Wednesday afternoon.

With companion bills filed from the House and Senate, a committee hearing was held to push them forward: property tax cut bills Senate Bill 2/House Bill 2, franchise tax bills Senate Bill 3/House Bill 3, and the Constitutional amendment House Joint Resolution 2.

"This is my 29th year serving and this is the biggest deals, the biggest bills we will ever pass," said state Rep. Richard Raymond (D-Laredo).

The key parts of the $18 billion compromise tax deal include:

$12.6 billion to reduce school property taxes
Homestead exemption increase to $100,000
A non-homestead appraisal cap three-year pilot program that lawmakers call a circuit breaker
Franchise tax cut for small business
Reforming local appraisal board elections

The plan does not directly allocate money for renters. During Tuesday's House Ways and Means committee hearing, a trickle-down effect was promised.

"It’s an important question considering more than 40% of Texans do rent, and the rents are going up, is what we're doing here going to have a positive impact?" asked state Rep. Chris Turner (D-Arlington).

State Rep Morgan Meyer (R-Dallas) confirmed it would, but that there was no data available.

Cost of living in Austin highest in Texas

Property experts are saying it's more expensive to live in Austin than anywhere else in the state.

Renters who spoke to FOX7 said they want more than a promise.

"Don't forget about the people who are renting. We may not own a house yet, but we're still renting and that could be our goal. And if our goal is not, then it should be us to get a break as well," said Cassie Jones.

Lawmakers, according to Dosey Mitchell, need to think about the Little Man.

"A lot of people that have lived here for a long time, and our pay doesn't go up very much. But our rent keeps going up and up. And basically it's pushing us out," said Mitchell.

Renters were included in an alternative tax plan pitched by a group of Democrats last week. The architect of that proposal, State Rep. John Bryant (D-Dallas) told FOX 7 he’s going to try to get that idea amended into the new tax deal.

"We need to take care of overtaxed homeowners and overtaxed renters and realize that rental households have contributed as much to this surplus as everyone else," said Bryant.

Sustainable property tax relief in Texas

The new search for lasting property tax relief began Friday morning with a hearing by the House Select Committee on Sustainable Property Tax Relief.

State Rep Bryant wants to create an annual rental rebate of up to 10%. A few other states have rebate programs and the Texas Rebate according to Bryant would be managed by the Comptroller’s Office. Getting the rebate in the compromise tax plan once it hits the House floor will require some political maneuvering.

"Right. It's very difficult to fashion an amendment to complicated legislation that is not subject to a point of order. It must be germane, and it must meet all the other rules as well. We're working hard to make sure that our amendments are not subject to a point of order, but we recognize that the threat," said Bryant.

Lawmakers are expected to vote on the compromise tax plan by the end of the week. Jones is hoping it will include a break for renters like her.

"It would be something that could change my life," said Jones.

The tax deal if approved and signed by the governor will also require a public vote in November and the tax break would not kick in until the 2023 tax year. Lawmakers are also working on additional legislation to provide money for a teacher pay raise.

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