With Texas Gov. Greg Abbott’s blessing, lawmakers fast-track property tax reduce proposal

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With the renewed backing of Gov. Greg Abbott, laws to chop property tax charges is on a quick monitor via the Texas Legislature.

Republican lawmakers together with Abbott have confronted stress from the social gathering’s proper flank to focus on the state’s excessive property taxes. Backers have pointed to the $19 billion in federal stimulus cash that has been put aside for Texas public faculties and a virtually $8 billion surplus sitting in state coffers as a possibility for the state to supply some non permanent property tax aid.


“The apparent is that when you will have extra funds, you need to be giving a few of it again to the taxpayers,” stated state Sen. Paul Bettencourt, a Houston Republican and writer of the property tax laws.

Lawmakers are shortly pushing via a $2 billion tax-cut invoice that’s geared toward shaving about $200 off of a median Texas home-owner’s tax tab. The measure sailed via the state Senate by a 30-1 vote Wednesday afternoon, hours after Abbott added property tax aid to his listing of things for state legislators to deal with throughout this 12 months’s third particular session.

Bettencourt’s invoice now heads to the Home, the place Speaker Dade Phelan has signaled an eagerness to deal with the matter.

Property tax reform has lengthy been a pet subject for Texas Republicans. However at the same time as Abbott included the aid in earlier particular session agendas, it flew underneath the radar as conservative social points, the pandemic, the Texas energy grid and the GOP voting invoice grabbed the highlight.


A model of Bettencourt’s invoice made it to the Home in the course of the earlier legislative session — however lawmakers ran out of time to take it up.

Abbott’s revived curiosity in property tax aid comes as he faces a March main that’s testing his goodwill with the social gathering’s proper wing. Don Huffines, a former state senator difficult Abbott, needled the governor for initially leaving property tax cuts off the third particular session agenda.

Earlier than Abbott’s transfer, Lt. Gov. Dan Patrick appeared primed to push ahead on property tax aid with or with out Abbott’s blessing. In a session primarily known as so lawmakers might fulfill a once-a-decade requirement to redraw the state’s political maps utilizing the most recent census knowledge, Patrick deemed laws slicing property taxes his high precedence.

“This represents a quantum shift in the way in which we take into consideration spending surplus {dollars},” Patrick stated final week. “Tax aid should come first — earlier than new spending.”


When Abbott joined Patrick in prioritizing property tax cuts this week, he stated it was “essential to bettering the standard of life for all Texans.”

Tax aid for property homeowners joins a crowded to-do listing for Texas lawmakers this session — which incorporates redistricting, contemplating whether or not COVID-19 vaccines could be mandated and determining how you can spend $16 billion in federal stimulus {dollars} to assist the state bounce again from the COVID-19 pandemic.

Additionally on the listing: restrictions on what sports activities groups transgender scholar athletes can be part of, one other Patrick precedence. Patrick had known as on Abbott to make lawmakers take up the matter in a particular session after it failed within the common session.

“Patrick is appearing like Abbott’s political id, the reflexive political a part of the governor’s mind pushed by base instincts of political survival,” stated Brandon Rottinghaus, a political science professor on the College of Houston. “When Abbott is apprehensive concerning the base, he listens to Patrick.”


However in contrast to a number of the red-meat points held pricey by social conservatives, slicing property taxes holds broad attraction, political analysts stated.

“I believe they’re responding to important and intense considerations that common taxpayers have,” stated Matt Mackowiak, Travis County Republican Social gathering chair. “And I believe it will be laborious to undergo a daily session and three particular periods and never have property taxes meaningfully addressed.”

The primary car for property tax aid this session is Senate Invoice 1 — authored by Bettencourt, Patrick’s chief lieutenant on property taxes.

Underneath the invoice, the state would use $2 billion in state funds to exchange public schooling funding that will in any other case be collected by a college property tax, the majority of a house owner’s tax invoice. Faculty districts must decrease their tax charges in the course of the 2022-23 college 12 months.


For a house owner whose property is price $300,000, the median worth of a Texas residence, that interprets to $200 in non permanent tax aid subsequent 12 months, in keeping with Bettencourt’s workplace — although college district property tax charges can range.

“It is a incredible invoice for property taxpayers of all sorts, whether or not they’re the place individuals work, the place they sleep … it’ll assist everybody out,” Bettencourt stated on the Senate flooring Wednesday.

If the Texas economic system grows sufficient by June, the whole state income used to offset property taxes might develop to $4 billion. In that occasion, the median home-owner would see no less than $300 in tax financial savings.

However even some Senate Republicans who voted for the invoice have raised considerations. Customers regaining confidence within the economic system has bolstered the state’s income and helped put an additional $8 billion within the piggy financial institution, state Sen. Charles Perry, R-Lubbock stated throughout a Senate Finance Committee listening to Tuesday — however who is aware of how lengthy that can final?


“I’ve some actual considerations that we’re spending cash we do not have,” Perry stated.

Others apprehensive the tax aid wasn’t sufficient. Texas property homeowners pay a number of the highest tax charges within the nation — a byproduct of public faculties’ reliance on property taxes for funding and an absence of a state revenue tax.

To provide tax aid to owners one 12 months solely to have taxes go up once more the following is a tricky promote, stated state Sen. Robert Nichols, R-Jacksonville.

“I believe we’re all supportive of lowering taxes … however for me to return and simply inform individuals, ‘nicely that is simply non permanent, in all probability, possibly we do not actually know, we’ll have to attend and see,’ I do not like to present talks like that,” Nichols stated. “I might a lot reasonably have a everlasting answer.”

Texas lawmakers have chipped away in school property tax charges up to now two years. Home Invoice 3, the landmark $11.6 billion college finance invoice, included $5.1 billion in tax cuts on high of $6.5 billion in new spending. The invoice put caps on college districts’ tax charges — caps that will turn into extra stringent underneath SB 1.


“We have no plan to exchange these property tax revenues,” stated Chandra Kring Villanueva, a program director on the left-leaning Each Texan, previously the Middle for Public Coverage Priorities. “So annually, the state has to tackle a higher and higher share of faculty funding. However none of these {dollars} profit the classroom.”

Bettencourt dismissed these considerations.

“Definitely, by any measurement, that kind of dramatic enhance in funding into the general public college system doesn’t go away me with any understanding of how individuals are underfunded at this level,” Bettencourt stated.

Disclosure: Middle for Public Coverage Priorities, Each Texan and College of Houston have been monetary supporters of The Texas Tribune, a nonprofit, nonpartisan information group that’s funded partly by donations from members, foundations and company sponsors. Monetary supporters play no function within the Tribune’s journalism. Discover a full listing of them right here.


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