Want property tax relief? Texas Senate, House advance competing bills to cut taxes
AUSTIN (CBSNewsTexas.com) – Kathy Hill of Richardson says her rising property tax bills have been challenging and frustrating. "We just haven't had any relief over the years."
Both the Texas House and Senate have proposed very different priority legislation designed to provide property owners like Hill some relief.
While leaders in both chambers want to cut property taxes by about $16.5-$17 billion in property taxes, which is about half the state budget surplus of nearly $33 billion, lawmakers are far apart on how to get there.
In the House, lawmakers have proposed lowering the cap on property appraisals from 10% now to 5%.
This applies for not only residential, but business and agricultural properties too.
To make up for lost property tax revenue, the House plan would add state money to pay for public schools.
Under the House plan laid out by Ways and Means Committee Chair Morgan Meyer, R-Dallas, property owners would save on average $542 in 2024 and $733 in 2025 based on a $350,000 home.
During a hearing last week, Meyer said, "House Bill 2 protects homeowners and businesses from the shock of rapidly rising property values while also making it easier to plan for future investments and economic growth."
Over in the Senate, lawmakers have proposed increasing the homestead exemption to $70,000 for 5.7 million homeowners.
That would provide $756 in savings in 2024 and nearly $800 in 2025 on a $331,000 home.
For people over the age of 65, the Senate plan would increase the homestead exemption to $100,000 for nearly 2.1 million homeowners.
That would give seniors a savings of $1,033 in 2024 and $1,062 in 2025 on that same $331,000 home.
During a news conference last week, Senator Paul Bettencourt, R-Houston said, "What we have is tremendously good news for Texas taxpayers today. These are eye-popping, off the chart numbers of savings that they can realize through the Senate plan."
The Senate plan also provides more state money to pay for public schools.
As for Kathy Hill, she says while she's paid-off her mortgage, like everyone else, she's had to pay more for food and other items – so a cut in property taxes would be welcome news. "It will make a difference because there are just the ongoing costs of maintaining a home and when you're on a fixed income, it would really, really help."
The Senate has also proposed increasing the property exemption for Texas businesses from $2,500 now to $25,000, and also provide a 20% cut in the business inventory tax.
The Senate could approve its property tax relief legislation this week.
The House Ways and Means Committee approved House Bill 2 out of committee Monday and the legislation will eventually make it to the full House for a vote.