Texas Lawmakers Reach Property Tax Cut Agreement
Lawmakers in the Texas House and Senate have reached a tentative agreement aimed at reducing property taxes for residents, marking a significant shift in discourse from past years. On May 5, key legislative figures, including state Senator Paul Bettencourt and state Representative Morgan Meyer, announced plans to enhance tax breaks for homeowners, particularly benefiting older and disabled Texans.
The proposed package includes an increase in the homestead exemption, raising it from $100,000 to $140,000, alongside $3 billion in cuts to school tax rates over the next two years. A homeowner with a property valued at $302,000 is expected to save over $500 on school taxes in 2024. Furthermore, older and disabled homeowners would see their exemptions rise from $10,000 to $60,000, totalling a $200,000 homestead exemption.
For businesses, the proposed House Bill 9 seeks to exempt up to $125,000 of inventory from property taxation, permitting greater financial flexibility. Although negotiations initially faced disagreements on exemption amounts, a consensus has been reached to benefit businesses while sending substantial funds to school districts to offset the impact.
Despite the ambitious commitments, concerns linger among lawmakers regarding the long-term affordability of these tax cuts. No direct benefits for Texas’s 4.2 million renters are included in the proposals, although proponents argue that renters will indirectly benefit from broader tax rate reductions.
While both proposals have successfully passed the Senate, further action from the House Ways and Means Committee is anticipated before final approval. The path forward for this tax cut deal remains uncertain but signifies a collaborative effort to address Texas residents’ growing concerns about property taxes.
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