State
BY HANNAH NORTON
Texas House, Senate disagree on how to cut property taxes
The debate
In favor of HB 8
“We strongly believe the best mechanism to provide tax relief is to ensure tax equity... by focusing on broad tax compression and lowering the tax rate paid by all taxpayers.” ROBERT WOOD, GOVERNMENT CONSULTANT
State lawmakers vowed to continue cutting residents’ property taxes this year after passing an $18 billion tax relief package in 2023. Gov. Greg Abbott has proposed spending $10 billion of Texas’ nearly $24 billion budget surplus on the tax cuts, while drafts of the 2026-27 state budget include about $6.5 billion to maintain existing tax cuts and enact new ones. Yet leaders of the Texas House and Senate proposed dueling plans to cut taxes this session, following months of debate and two special sessions focused on the topic in 2023. The two-pronged House plan would expand a tax exemption for business owners and reduce school district tax rates by about $0.10 per $100 of taxable property value. According to the legislation, school districts would receive money from the state to ensure they do not lose revenue by reducing their tax rates. State senators are backing a plan to raise tax exemptions on Texans’ homes by $40,000. The current homestead exemption is $100,000 for most homeowners, and $110,000 for seniors and people with disabilities. Rep. Morgan Meyer, R-University Park, who authored the House proposals, said lawmakers have made “a commitment to give the taxpayers their money back” through tax cuts.
House Bill 8 • Would lower school district tax rates, which impact all taxpayers • Advanced out of a House committee on March 10
In favor of SB 4
“[A few hundred dollars] can have a very signi cant impact on decisions when it comes to purchasing a home, or deciding whether to purchase a home.” DIXON HOLMAN, REALTOR
House Bill 9 • Would exempt up to $250,000 of business’ personal property, including equipment and vehicles, from taxation • Property worth $2,500 or less is currently exempt • Would require voter approval in November • Passed by the House on April 3
Also of note
Some Texans have also urged lawmakers to crack down on local o cials’ ability to raise taxes. “When the legislature cuts taxes, local governments use that as an opportunity to raise taxes through aggressive rate increases,” James Quintero, a policy director for the conservative Texas Public Policy Foundation, said Feb. 11. Abbott has said lawmakers should prevent entities from raising taxes without two-thirds voter approval.
Senate Bill 4 • Would expand tax exemptions for homeowners • Would save the average homeowner $363 annually • Would require voter approval in November • Passed by the Senate on Feb. 13
SOURCE: TEXAS LEGISLATURE ONLINE COMMUNITY IMPACT
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