AUSTIN, Texas — In front of a packed house in New Caney on Wednesday, Gov. Greg Abbott ceremonially signed a multibillion-dollar property tax relief package.

“We know whose money that is," he said. "That money belongs to the taxpayers, and we are giving it back to the taxpayers affected.” 

Last year, Abbott promised to return more than half of the state’s $33 billion budget surplus to property owners. But in order to get the cash back, voters must approve the property tax overhaul in a constitutional election in November. It’ll be Proposition 4 on the ballot.

What You Need To Know

  • Gov. Greg Abbott has signed a multibillion-dollar property tax relief package for Texans

  • Months ago, Abbott promised to return more than half of the state’s $33 billion budget surplus to property owners. But in order to get the cash back, voters must approve the property tax overhaul in a constitutional election in November

  • The package puts more than $12 billion toward reducing the school property tax rate for homeowners and business properties, which is what the House and Abbott pushed for
  • Policy analysts and lawmakers project the $18 billion tax plan will reduce a homeowner's property taxes by about $1,300 per year. Disabled homeowners and those over 65 can expect to save even more

“I think people are gonna vote 'four for four,' very quickly. And if not, I'm going to be doing radio ads around the state to help encourage them to do that," said Sen. Paul Bettencourt, R-Houston.

Sen. Bettencourt was at the helm of negotiations between the House and Senate. A months-long stalemate over how best to provide the cuts brought both chambers back to the Capitol for two special sessions.

The final plan includes what both chambers wanted. 

“This is our best product, without question," said Texas House Speaker Dade Phelan, R-Beaumont. 

The package puts more than $12 billion toward reducing the school property tax rate for homeowners and business properties, which is what the House and Abbott pushed for. The plan also raises the homestead exemption to $100,000, which is the amount of a home’s value that cannot be taxed. This was a non-negotiable for Lt. Gov. Dan Patrick.

Policy analysts and lawmakers project the $18 billion tax plan will reduce a homeowner's property taxes by about $1,300 per year. Disabled homeowners and those over 65 can expect to save even more.

It will also provide relief for small businesses.

“This was a team effort," said Lt. Gov. Patrick, R-Texas.

A few Democrats joined more than two dozen Republicans to show their support. 

“I represent a very diverse district, and most of the families who are homeowners are all saying they need this, particularly our elderly," said Rep. Shawn Thierry, D-Houston. "They said they can save and use that money to make repairs on their homes.” 

For now, "The Big Three" — Abbott, Patrick, and Phelan — are celebrating this victory under one roof.

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