Texas Senate approves property tax relief bill that includes extra payments for teachers
AUSTIN (CBSNewsTexas.com) — Texas senators unanimously passed a new property tax relief bill that also includes thousands of dollars in extra payments for teachers for two years.
It happened as they began their second special session Wednesday.
And in what could be a sign of progress toward ending the month-long standoff between Republican leaders, Lieutenant Governor Dan Patrick told senators that he will meet with House Speaker Dade Phelan next week. "I sent him a text and said the best way to resolve this is face-to-face. They have responded, looking forward to a meeting."
The additional teacher payments, which are not considered a pay raise, came in an amendment to the property tax relief bill proposed by Democratic State Senator Roland Gutierrez of San Antonio.
It gives teachers an extra $2,000 in school districts with more than 20,000 students, and an extra $6,000 in districts with fewer than 20,000 students.
The rest of the 30-member Senate approved and signed the amendment, which will cost the state $3.2 billion. The money will come from the state's nearly $33 billion surplus.
"I want everyone in Texas to know we all sat up front with the president's leadership," Gutierrez said. "We did this, it took us an hour-and-a-half, two hours, but we worked out all the differences."
The bill also provides $18 billion in total property tax relief. Homeowners would see their homestead exemptions rise to $100,000.
Senators say that provides savings of nearly $2,600 dollars for most homeowners for the first two years, and nearly $3,000 in savings for the first two years for homeowners over 65.
The legislation also doubles the business franchise tax exemption to nearly $2.5 million, meaning 67,000 small businesses wouldn't have to pay a business franchise tax at all.
The Texas House also convened Wednesday, and the House Committee on Ways and Means passed a different bill than the Senate's.
It does not increase the homestead exemption but does focus solely on reducing property tax rates for schools and instead replacing them with state revenues, as Governor Greg Abbott requested.
He also wants to put the state on a path to gradually eliminate the maintenance and operation portion of school property taxes, which is the largest portion.
Lt. Gov. Patrick wants the House to pass the Senate bill. "So we reach out to our friends in the House, and we ask them to seriously consider the bill."
CBS News Texas emailed Speaker Phelan's office seeking comment, but has not heard back.
If the House also passes the Senate's bill and Gov. Abbott signs it, voters would also have to approve it on election day in November.