AUSTIN, Texas — The Texas Senate is pitching a new property tax relief plan, as the standoff with the House and governor continues. The lawmakers don’t agree on everything, but in a show of bipartisanship, Democrats and Republicans from the upper chamber stood together to support the newest plan that’ll cost more than $18 billion.
“I want to thank the Texas House for bringing the Senate together,” said Sen. John Whitmire, D-Houston, which caused a laugh from other members.
To break the impasse, senators included more cuts for businesses.
“This bill will give homeowners approximately a 41% cut in their school taxes. It will give businesses the biggest tax cut they’ve ever had. It preserves the homestead exemption,” said Lt. Gov. Dan Patrick, who leads the Senate.
Homestead exemptions are what the Senate has always wanted. Lt. Gov. Patrick insists the state must increase the amount of a home’s value that cannot be taxed. This latest version would also put more money toward driving down school district tax rates. And to give more businesses tax relief like the governor and House speaker want, the Senate doubled the franchise tax exemption, which expands the number of businesses that won’t have to pay.
“The governor is getting 72% almost, or 71%, of what he asked for. Anytime you get 70/30, I think you have a victory,” Lt. Gov. Patrick said.
While Gov. Greg Abbott supports the House plan rather than the Senate version, in a new statement to Spectrum News, his spokesperson said “he encourages the two chambers to work toward a solution” so a bill can get to his desk.
Senator Paul Bettencourt, R-Houston, said the plan will save homeowners more than a thousand dollars every year.
“Homeowners—all 5.72 million of them—will be getting $1,270 in the first year savings, and if you happen to be over 65, those savings are nearly $1,450. Truly eye-popping,” he said.
The future of the proposal is unclear since the House adjourned weeks ago, giving the Senate a “take it or leave it” property tax bill. But the House made its own move on property taxes Tuesday with Speaker Dade Phelan announcing a new committee to study sustainable, long-term property tax relief. Lt. Gov. Patrick is still asking the House to come back to work on their new plan, especially since the window is closing to get an amendment on the November ballot for voters to approve it.
“This plan that the Senate is providing is very similar to legislation that the Speaker already rejected. There’s nothing here that I think is going to lead the speaker to bring the House back,” said Mark Jones, a political science professor at Rice University.
Until they pass a plan, home and business owners are left wondering when they’ll see the money Gov. Abbott promised them.
“At the end of the day, this isn’t Senate versus House. This is about us representing the same people: the Texas taxpayer,” said Sen. José Menéndez, D-San Antonio.
Lawmakers only have a week left in this first special session to pass a plan. If it doesn’t happen, Gov. Abbott will probably call another one.