Political showdown at Texas Capitol over how to lower property taxes
AUSTIN (CBSNewsTexas.com) – Texas Lt. Governor Dan Patrick drew a political line in the sand Thursday over key differences with the House on how to lower Texans' property tax bills. "The math doesn't work."
In his strongest language yet, Patrick rejected the House's plan to lower property taxes and insisted it's dead on arrival in the Senate. "Sometimes, you just have to know when to fold your cards and if they send the bill over, we're not doing appraisal caps. Period. End of story."
Hours later, the author of the House bill, Representative Morgan Meyer, R-Dallas, urged his fellow lawmakers to approve their plan, House Bill 2.
On the House floor Meyer said, "We have an opportunity here to provide the largest property tax cut in our state's history and we should certainly do it."
House Bill 2 would lower the cap property appraisals can go up each year from 10% now to 5% for all property owners: residential, business, and agricultural.
That would save property owners on average $542 in 2024 and $733 in 2025 based on a $350,000 home.
The Senate plan, which was approved unanimously last month, would increase the homestead exemption for most homeowners from $40,000 to $70,000 saving people on average $756 in 2024 and nearly $800 in 2025 based on a $331,000 home.
For people over 65, the Senate plan would increase the homestead exemption to $100,000, saving seniors on average of $1,033 dollars in 2024 and $1,062 dollars in 2025 on that same $331,000 home.
During the vote, the Chair of the House Democratic Caucus, Trey Martinez Fischer, offered one amendment seeking a compromise, using the Senate's homestead exemptions and lowering the appraisal cap to 7.5% instead of 5%. "Homestead exemptions do much better for working-class families, middle-class families."
But the House rejected that and every other amendment and voted overwhelmingly to approve House Bill 2, 140-9.
Afterwards, Speaker Phelan told reporters at the Capitol that he's willing to work with the Senate on this and negotiate. "There's nothing that's dead in the Texas House and there shouldn't be anything that's dead in the Senate. We sent a clear message that our proposal is just as popular as the Senate proposal, and I think what we need to do is what's best for all Texans."
Aside from the key differences in the competing bills, the House and Senate legislation call for the state to use billions of more dollars in funding to pay for public schools instead of relying on property taxes.
Dawn Lopez Luyster, a Fort Worth homeowner said she's watched her property taxes rise. "The taxes are too high. We need some relief."
Luyster said it's gotten to the point that the cost of her property taxes and home insurance are above the mortgage payment.
She had a message for lawmakers. "Whoever is in charge of doing this tax negotiation, you need to get to work, you need to quit fighting."
CBS News Texas asked the Governor Greg Abbott's office if he has expressed a preference - either the Senate or House plan, and we didn't hear back. The Governor though has promised the state will deliver the largest property tax cut in state history by using half of the state's nearly $33 billion surplus and sending it back to property owners.
