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Friday, November 22, 2024

Gov. Abbott: 'Today, I am signing a law that will ensure more than $18 billion in property tax cuts—the largest property tax cut in Texas history'

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Gov. Greg Abbott held a ceremony in the Houston area to sign the the $18 billion tax cut package for Texas property owners. | Office of the Texas Governor

Gov. Greg Abbott held a ceremony in the Houston area to sign the the $18 billion tax cut package for Texas property owners. | Office of the Texas Governor

Gov. Greg Abbott ceremonially signed legislation enacting an $18 billion property tax cut, the largest in Texas history, passed during Special Session #2 of the 88th Legislature on Aug. 9. The signing took place in New Caney, attended by Lt. Gov. Dan Patrick, Speaker Dade Phelan, Sen. Paul Bettencourt, Rep. Morgan Meyer, and other legislators.

"Today, I am signing a law that will ensure more than $18 billion in property tax cuts—the largest property tax cut in Texas history," Gov. Abbot said, according to an Aug. 9 press release.

According to Abbot's announcement, the law will raise Texas homestead exemptions to $100,000, safeguard senior homeowners, double the small business exemption for the Franchise Tax, and shield Texan small businesses from undue appraisal hikes, if approved by voters this fall on Nov. 7. The Governor credited Lt. Gov. Patrick and Speaker Phelan for their instrumental roles in achieving these significant changes.

Gov. Abbott prioritized reducing property taxes for Texans as an urgent matter during his 2023 State of the State address. Through Senate Bill 2 and Senate Bill 3, Texas will allocate $18 billion from its budget surplus to lower school district property tax rates, increase homestead exemptions, and raise Franchise Tax exemptions and appraisal caps for small businesses. Lt. Gov. Patrick hailed the Texas-sized tax cut as a significant win for the state's homeowners, and Speaker Phelan emphasized the substantial impact of the $18 billion relief package, praising the collaborative efforts of lawmakers, according to the press release.

Per the press release, Senate Bill 2 offers property tax relief by compressing tax rates, raising homestead exemptions, and introducing a pilot project to limit appraised value growth, potentially saving the average Texan homeowner over $1,200 for the 2023 tax year, with over $1,400 in savings for those over 65 or with a disability. Senate Bill 3 raises the Franchise Tax "no tax due" threshold to $2.47 million and streamlines filing requirements for those exempt from tax payment.

"Governor Abbott just signed the greatest tax cut in the history of the world. It’s a fabulous $18 billion tax reduction bill, and every Texan will see huge savings on their tax bill," Sen. Bettencourt said in a statement. "It was a great joy working with the Governor, Lieutenant Governor, Speaker, House, and Representatives Meyer and Metcalf."

The Texas Tribune reports that House Democrats failed to advance alternative tax relief proposals, such as Dallas state Rep. John Bryant's plan, which aimed to provide tenants with a cash refund of up to 10% of their previous year's rent. Bryant's proposal also sought to double the homestead exemption to $200,000, while additionally proposing a teacher pay increase and increased school funding, differing from the current bill.

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