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The Texas Legislature is currently working through two different strategies when it comes to property tax relief.
On one side in the Senate, they've agreed to Senate Bill 4 and it's companion Texas Senate Joint Resolution (SJR) 2 which increases the homestead exemption for school district property taxes from $100,000 to $140,000. Sen. Paul Bettencourt (R-Houston) was the author of the bill, which passed unanimously out of the Senate earlier this month.
Over in the House, Chairman Morgan Meyer (R-Dallas) recently filed House Bills 8 and 9 alongside House Joint Resolution (HJR) 1, the accompanying constitutional amendment. Included in the proposal is an increase in the business personal property tax exemption from $2,500 to $250,000 and compressing school district Maintenance & Operations rates by $0.0331. House Speaker Dustin Burrows said he supports the legislation, stating that it is the nation’s second-largest exemption of its kind.
Gov. Greg Abbott has called for lawmakers to find at least $10 billion in relief as property tax relief was one of the key issues facing the Texas Legislature this session.
Brad Johnson, Senior Reporter at The Texan, said we're looking at two completely different blueprints for how lawmakers want to give that property tax relief to Texans.
"The Senate is back with it's homestead exemption-focused plan, trying to raise that another $40,000, and the House has a plan that is more business-focused, specifically trying to increase the business personal property tax exemption," said Johnson.
The question now is whether both sides are willing to reach a compromise on this and deliver more relief to Texans.
"The Senate has shown that it is going to stick with the homestead exemption and the House, at least right now, is moving forward with this business-focused side of things," Johnson said. "There is reason for optimism, especially in avoiding what happened last session."
In 2023, there was a stalemate and multiple special sessions called for lawmakers to figure out a plan on property tax relief. Voters approved of Proposition 4, highlighted by a $18 billion property tax-cut package for Texas homeowners and businesses.
We should see a more clear direction from Texas lawmakers regarding property tax relief next week when the House Ways and Means Committee meets to take up the property tax relief package.
Rep. Steve Toth of The Woodlands said if passed, the House proposal will lift up small businesses in Texas.
"What this does is put more money in the pockets of small business owners across the state of Texas that is going to enable them to thrive and be strong in the midst of tough economic times, and these are tough economic times right now," said Rep. Toth.
Texas is doing much better than much of the rest of the country from an economic standpoint, but the state must try to relieve the tax burden on Texans, especially property taxes.
"School districts, municipal utility districts, college boards and hospital districts are killing cities, county governments and property owners," Rep. Toth added.
Rep. Toth said the House is fully embracing this proposal from Rep. Meyer and is optimistic that something will get through that the Senate and the House both agree on.