PROPERTY TAX REDUCTIONS PROPOSALS FROM THE HOUSE AND STATE – A COMPARISON
With no indication of a resolution, the impasse between Texas’ top Republicans over how to fulfill pledges to lower residents’ property taxes is entering its third legislative session this year in line with the various property tax reductions proposals.
Governor Greg Abbott promptly summoned House and Senate leaders back to the Capitol to give him a measure in a special legislative session after they failed to reach an agreement in late May on how to implement property tax reductions. However, lawmakers were unable to come to an agreement before Tuesday’s session deadline.
Tuesday saw the prompt call by Abbott of a second special legislative session with just one issue: property tax reductions. Although neither chamber was anticipated to meet before Wednesday, the session officially started on Tuesday afternoon, giving legislators 30 days to come to an agreement on how to allocate a sizable portion of the state’s record $32.7 billion budget surplus to help decrease property tax payments.
There is a deadline for lawmakers to come to a property tax reductions agreement. Voters will need to pass a constitutional amendment election if lawmakers agree to a raise in the homestead exemption, which decreases the percentage of a home’s worth that can be taxed to support public schools.
(Property Tax)
PROPERTY TAX REDUCTIONS: HOMESTEAD EXEMPTION PROPOSAL
The homestead deduction in the Senate is unique from some of the other programs in that it is exclusively available to homeowners, according to Richard Auxier, senior policy associate at the Urban-Brookings Tax Policy Center. Due to the reduced taxable value of their homes, homeowners who benefit from this property tax reductions proposal will pay less in property taxes overall.
PROPERTY TAX REDUCTIONS: TAX-RATE COMPRESSION PROPOSAL
Richard Auxier noted that the House Chamber’s suggestion for tax-rate compression, a property tax reductions, is just another way of saying a straightforward tax rate reduction. The primary difference between this and the Senate version is that the lower rate really receives all the funding anticipated for the tax reduction. Only homeowners are eligible for the residence deduction, therefore both individuals and businesses will pay a lower rate. By spending all of the funds in the rate decrease, they are therefore giving consumers and companies more benefits.
Hence, this property tax reductions proposals may help aleviate the burdens from taxpayers.
