DALLAS — Texas householders are one step nearer to an even bigger tax break after the state Home gave unanimous preliminary approval to a set of legislative proposals Tuesday.
Home members superior payments aimed toward giving householders reduction on the property taxes they pay towards faculty districts, the most important chunk of a property proprietor’s tax invoice. Senate Invoice 4 by state Sen. Paul Bettencourt, a Houston Republican, would change the state’s homestead exemption, which reduces how a lot of a house’s worth could be taxed to pay for public faculties, from $100,000 to $140,000.
Senate Invoice 23, one other Bettencourt proposal, would increase a separate homestead exemption for householders who’re older or have disabilities from $10,000 to $60,000.
Each payments — key priorities for Lt. Gov. Dan Patrick, who leads the Texas Senate — should come again earlier than the Home Wednesday for a remaining vote earlier than heading to Gov. Greg Abbott’s desk.
Offering larger tax breaks to householders is a key element of a deal brokered by Republicans within the Texas Legislature to decrease tax payments for Texans, who pay among the many highest property taxes within the nation. The opposite main piece is giving enterprise homeowners larger exemptions on their stock. Texas is among the few states that taxes companies’ stock.
Home Invoice 9 by state Rep. Morgan Meyer, R-College Park, would exempt as much as $125,000 of companies’ stock from being taxed by faculty districts, cities, counties or some other taxing entity. Underneath present legislation, companies don’t should pay taxes on that property if it’s value $2,500 or much less.
The Texas Senate accredited that invoice final week, and Home members gave a thumbs-up Monday to adjustments that chamber made.
Home lawmakers shot down a push by the chamber’s extra conservative members to spice up the homestead exemption to $160,000. Supporters of the failed modification argued that legislators might additional faucet the state’s $24 billion surplus to pay for larger reduction. However different lawmakers burdened that state price range writers have solely put aside sufficient cash to pay to lift the exemption to $140,000.
The proprietor of a house valued at $302,000 — in regards to the typical Texas residence worth final 12 months, in keeping with Zillow — would have saved greater than $500 on their 2024 faculty taxes had the $140,000 exemption been in place that 12 months, in keeping with a Tribune calculation. That’s when the exemption is mixed with $3 billion in cuts to highschool tax charges proposed within the state’s upcoming two-year price range.
Texas lawmakers plan to spend $51 billion on chopping property taxes over the subsequent two years. State price range watchers and a few lawmakers, together with Republicans, fear that the state gained’t be capable to afford tax cuts in the long run.
Voters in November can have the ultimate say on whether or not the tax reduction takes impact. The adjustments should be accredited by voters as a result of they every contain amending the Texas Structure.
Lawmakers seem on observe to go their main property tax laws earlier than they go away Austin in June. That’s a marked distinction from two years in the past, when Home and Senate leaders couldn’t come to phrases on a tax-cut deal earlier than the clock ran out, forcing Abbott to name two particular periods to return to phrases.
This text initially appeared in The Texas Tribune, a member-supported, nonpartisan newsroom informing and interesting Texans on state politics and coverage.
