Texas House passes new version of property relief bill promising $21B in savings
AUSTIN (CBSNewsTexas.com) – The Texas House gave final passage to a bill Friday that promises homeowners a bigger break in property taxes than first proposed.
When the Senate first proposed SB 3, it was worth $16.5 billion in property tax relief, about half the projected budget surplus.
But the newly approved House version of this bill kicks it up to $21 billion in potential savings.
Tarrant County homeowner Ken Hoppenrath says he and his wife watched their property tax bill increase by $5,000 in the past three years. "Oh, it's a lot."
It's changed their plans. "My wife's retired, I was looking at retiring, but right now, with inflation and with property taxes going up, I can't right now."
Hoppenrath may receive the relief they need if a new version of SB 3, passed in the Texas House ultimately becomes law.
It would raise the current homestead exemption for most homeowners from $40,000 to $100,000. It would also increase the current homestead exemption for seniors over 65 from $70,000 to $110,000.
That's more than the original Senate plan.
On a $350,000 home, that amounts to about $2,800 in savings for most homeowners during the first two years and more than $3,000 in savings for seniors over 65 during the first two years.
That is also more than the original Senate plan.
The House version would also reduce the annual cap on taxable assessments of residential property from 10% to 5%.
Commercial properties would also be included in the 5% cap.
Currently, there is no such cap in place for commercial properties.
In the Senate chamber Friday afternoon, House Speaker Dade Phelan made a surprise appearance with Lt. Governor Dan Patrick.
They have recently butted heads on social media over their different property tax reform bills.
The latest House version of SB 3 is a compromise.
The Lt. Governor told members of the Senate, "So the Speaker and I had a very good meeting, we're working on a lot of things, working together, right?"
In response, Phelan said, "Absolutely."
Those discussions may help Ken Hoppenrath, who's worried about keeping his home. "Taxes may price us out."
The Lt. Governor and Senate will now have to decide whether to accept the new House version of their bill or start negotiations.
That's very likely what Dan Patrick and Dade Phelan discussed.
The House and Senate are also far apart on SB 8, the school choice bill.
Earlier this week, Governor Greg Abbott threatened to veto the House version of the school choice bill if it reaches his desk and to call lawmakers back for a special session over the issue.
