AUSTIN, Texas — After weeks of Texas House Speaker Dade Phelan and Lt. Gov. Dan Patrick trading jabs over each other's property tax relief plans, the House is offering to combine them. House lawmakers gave overwhelming approval Thursday to a tweaked tax relief plan that would amount to more than $16 billion in cuts for property owners.

What You Need To Know

  • The Texas House is offering to combine two property tax relief plans

  • The combined plans would amount to more than $16 billion in cuts for property owners

  • To soften the blow of higher appraisals and their inevitable tax increases, Republican leaders in the House are adamant that lowering the state’s appraisal cap from 10% to 5% is the right move

  • While tamping down on the state’s property tax burden is a top priority for leadership, warring proposals have driven a wedge between the two chambers

A housing market as hot as Texas summers can lead to a rise in home valuation. To soften the blow of higher appraisals and their inevitable tax increases, Republican leaders in the House are adamant that lowering the state’s appraisal cap from 10% to 5% is the right move.

It would apply to residential and commercial property owners. Sponsors of the bill on Thursday defended the controversial idea that has gotten pushback by their Senate counterparts, housing experts and business groups.  

“These two sections provide predictability and protect all property owners from the shock of rapidly rising property values,” said Rep. Morgan Meyer, R-Dallas. 

In a compromise with the Texas Senate, the House’s latest update to its property tax relief plan also raises the amount of a home’s value that cannot be taxed to $100,000 and it would apply to all Texas homeowners. It is an additional $10,000 for seniors. That homestead exemption ended up higher than the $70,000 the Senate passed.

Combined with tightening up school district tax rates, Phelan’s office said the average savings on a $350,000 home would be about $2,800 over two years.

“It was my hope to put something on the floor that would sort of strike a middle ground from the two competing chambers,” said Rep. Trey Martinez Fischer, D-San Antonio.

“I know for a lot of, a lot of folks who represent blue-collar and working families the homestead exemption is the way to go. I'm glad to see this in this proposal. I'm glad to see this being incorporated,” he continued. 

While tamping down on the state’s property tax burden is a top priority for leadership, warring proposals have driven a wedge between the two chambers. The big question is, will the Senate accept a plan that combines all their ideas including the House’s appraisal caps?

When asked by Spectrum News if this version will pass the upper chamber, Sen. Kelly Hancock, R-North Richland Hills, said there were still details that needed to be worked out.

“The homestead exemption was a priority for the lieutenant governor in our chamber, and so certainly, it can't be a bad thing to see it at least starting there, so it's a good starting place. There's some great ideas on both sides. And I think, at the end of the day, before we get out of here, you're going to see property owners with somewhere between a $15 and $20 billion reduction in property taxes.”

On whether it could be done with less than two weeks left this legislative session, Hancock said: “We seem to be close enough that I think level heads will prevail and you'll see us get that done before the end of session.”

Texas is enjoying a record budget surplus and leaders campaigned on providing big property tax cuts. 

It is possible that lawmakers from both the Senate and House will work out their differences behind closed doors. Ultimately, a proposal that clears the state legislature will have to be put on the ballot before voters and lawmakers are confident their constituents will be in favor of tax relief.