finally! After months of wrangling, Texas lawmakers reached a deal on property taxes.

The Texas Legislature and Gov. Greg Abbott agreed to an $18 billion tax cut package to help homeowners in the state, the Dallas Morning News reported. report. Abbott and House Speaker Dade Phelan have been at odds with Lieutenant Governor Dan Patrick on how best to spend the budget surplus on property tax cuts.

It was a breakthrough for the “Big Three” and was achieved during the second special session of the legislature. Phelan pushed for lower homestead assessment caps, while Patrick advocated for increased homestead exemptions. Abbott even said he wanted to “end property taxes” in Texas.

Under the legislation, homes valued at $100,000 or less are exempt from school property taxes. For a home appraised at $300,000, the owner will be taxed on the $200,000 value of the home. Current law allows for exemptions up to $40,000 in home value.

The proposal would reduce school property taxes by nearly 11 cents for every $100 of assessed value, equivalent to a reduction of $12 million over the next two years. The state will provide funds to school districts to offset lost property tax revenue, the outlet said.

For non-homestead properties valued at $5 million or less, owners “will receive a circuit breaker of 20 percent of the assessed value as a 3-year pilot program,” Phelan and Patrick said. These include commercial and residential properties.

this “breaker” Is a way of adjusting property taxes based on income.

The legislation would also allow small businesses to pay less on the franchise tax — which most businesses in Texas must pay — by a percentage ranging from 0.375 to 0.75, depending on the company’s net worth.

“This agreement represents a major victory for relief for Texas homeowners and reflects Texas leaders addressing taxpayer concerns and substantially reducing rising property prices,” Patrick and Phelan said in a news release. promise of a tax burden.”

It could provide relief to 5.7 million homeowners, the outlet said. Voters must approve the bill on Nov. 7 to take effect.

— Quinn Donoghue

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