Lt. Gov. Patrick, Speaker Phelan say agreement reached on property tax cuts

AUSTIN, Texas (KLTV) - Lt. Gov. Dan Patrick and Speaker Dade Phelan issued a joint announcement Monday on new state legislation reducing property taxes.

The tax legislation was referred to in the press release as an $18 billion cut, $12 billion of which is reportedly slated to go towards “reducing the school property tax rate for all homeowners and business properties.” The release additionally stated that homesteaders will receive a $100,000 exemption, which was estimated to affect 5.7 million homeowners.

“It may have taken overtime, but the process has produced a great bill for homeowners and businesses,” said Patrick.

Non-homesteaded properties valued $5 million and under will receive a 20 percent circuit breaker on appraised values as a three year pilot project, according to the release. The legislation will also reportedly include savings on franchise tax for small businesses, and create newly elected positions on local appraisement boards.

“Reducing property taxes, providing relief to small business owners, and reforming our appraisal system will ensure economic growth and prosperity, and this agreement is a significant victory for all Texans,” Phelan said.

Gov. Greg Abbott released a statement later Monday on the property tax cut.

“I promised during my campaign that the state would return to property taxpayers at least half of the largest budget surplus we have ever had. Today’s agreement between the House and the Senate is a step toward delivering on that promise. I look forward to this legislation reaching my desk, so I can sign into law the largest property tax cut in Texas history,” Abbott said.

The Senate and House are to file legislation Monday, with hopes of passing the omnibus property tax relief bill and the franchise tax relief bill later in the week.

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