EL PASO, Texas (KVIA) -- Texas Lieutenant Governor Dan Patrick and Speaker Dade Phelan announced a historic $18 billion property tax cut.
The Texas Senate and House reached this agreement on the proposed legislation that will be "the biggest property tax cut in Texas History."
According to a statement by the Texas House, this deal represents a significant win for providing relief to Texas property owners and it also reflects the commitment of Texas leaders to address the concerns of taxpayers.
It will provide significant relief from the burden of escalating property taxes as well.
The $18 billion tax cut legislation will include:
- Over $12 billion will be spent on reducing the school property tax rate for all homeowners and business properties.
- Every homeowner who homesteads their home (approximately 5.7 million homeowners) will get a $100,000 homestead exemption.
- Non-homesteaded properties, valued at $5 million and under, including residential and commercial properties, will receive a 20% circuit breaker on appraised values as a 3-year pilot project.
- Legislation will also include savings on the franchise tax for small businesses and create newly elected positions on local appraisal boards.
"Reducing property taxes, providing relief to small business owners, and reforming our appraisal system will ensure economic growth and prosperity, and this agreement is a significant victory for all Texans,” said Speaker Dade Phelan.
Both bills, the omnibus property tax relief bill and the franchise tax relief bill will originate in the Texas Senate and the constitutional amendment will be introduced as a House Joint Resolution (HJR).
The Senate and House will file legislation on Monday with the goal of passing the bills later this week.