Representative Lynn Stucky – Tax Relief Heading to the House
Legislative Victories in the 88th Regular Session
Dr. Lynn Stucky ready to deliver $18 BILLION in property tax relief
Today, the Texas Senate passed an $18 billion property tax relief package for hard-working Texans. The House will take up the debate and vote on the measure on Thursday, putting it on a path to Governor Greg Abbott’s desk.
When passed, it will be the largest cut in state history and will deliver on increased homestead exemptions, a compression of local school tax rates, more accountability on local appraisal boards, and other tax-saving programs to help renters and small businesses.
The details of the proposal, which was touted earlier this week in a joint-press release by Lt. Gov. Dan Patrick and House Speaker Dade Phelan, can be found below in this graphic:
Lt. Gov. Patrick shared high praise for the work that went into producing this legislation with support from both the Senate and the House. “Speaker Phelan and I worked diligently together over the last week on the final bill. It made the difference. It may have taken overtime, but the process has produced a great bill for homeowners and businesses,” said Lt. Gov. Patrick.
Highlights of the $18 billion tax cut legislation include:
Over $12 billion will be spent on reducing the school property tax rate for all homeowners and business properties.
Every homeowner who homesteads their home (approximately 5.7 million homeowners) will get a $100,000 homestead exemption.
Non-homesteaded properties valued at $5 million and under, including residential and commercial properties, will receive a 20% cap on appraised value increases as a 3-year pilot project.
The legislation will also include savings on the franchise tax for small businesses and create newly elected positions on local appraisal 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,” said Speaker Dade Phelan.
The 88th Texas Legislature started its regular session with a nearly $33 billion surplus from the previous budget. A surplus occurs when a conservative forecast is met with a booming state economy. Because of prudent management, Texas was able to use the fund to invest in important issues.
Property tax relief is the biggest ticket item, followed by important issues like strengthening border security, providing COLA increases for retired teachers, supporting school safety and law enforcement, expanding mental health, and protecting water resources for the future.
In addition to the special sessions, the Speaker is expected to release interim charges in the coming months. These are the items that House Committees will meet to discuss either during the special sessions or during the interim when the legislature is not in a called session.
As Vice Chair of the County Affairs committee, I expect some discussion on county jails and the regional mental health providers who work in tandem. As a member of the Appropriations Committee, I anticipate discussions on specific funding programs and eventually for the planning process to begin for writing the draft budget for the 2025 Legislative session.