The Legislature reaches a deal to rein in property taxes.
By Cyndi Bell
This morning, July 10, 2023, Lieutenant Dan Patrick and House Speaker Dade Phelan announced a historic agreement to approve more than $18 billion in Texas property tax cuts.
This morning, July 10, 2023, Lieutenant Dan Patrick and House Speaker Dade Phelan announced a historic agreement to approve more than $18 billion in Texas property tax cuts. The deal comes just over a week after the second convened special session of Texas' 88th legislative session began.
The compromise includes a $100,000 waiver, $12 billion to cover local college tuition, and a pilot program to influence appraisal estimates for small businesses. The plan also increases the minimum threshold for franchise payers from $1.25 million to $2.5 million.
Texas REALTORS® is excited that the plan will help Texas' 5.7 million homeowners by increasing the homestead (residency) exemption from the current $40,000 to $100,000.
The Association also welcomes the careful consideration of the House of Representatives concerns about imposing property taxes on non-residential real estate, such as rental properties and small businesses.
However, the work to obtain this huge property tax relief will not stop after the draft law is signed by the governor. Texans can expect a property tax when they vote in November; Many of the tax proposals in the package require constitutional amendments and must therefore be approved by voters.
As the state's largest trade association, Texas REALTORS® is a leading advocate for private property and landlord rights; Texas REALTORS® was proud to participate in the discussion on lowering property taxes.
We are also grateful to the many lawmakers who have worked in ordinary and extraordinary sessions to find a solution to this problem.