Property Tax Stalemate Ends! Speaker And Lt. Governor Strike Deal

After months of impasse, Speaker of the House Rep. Dade Phelan and Lieutenant Gov. Dan Patrick have jointly announced a property tax deal.

The comprehensive reform package  -$18 billion compromise – includes several key provisions, such as a substantial increase in homestead exemption, a compression of property taxes, franchise tax savings for small businesses, and the implementation of a test project to cap increases on non-residential properties.

The proposal must clear both chambers before it heads to Gov. Greg Abbott’s desk.

“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 Texas House Speaker Dade Phelan.

According to Phelan’s office, the legislation is expected to be passed this week.

The legislation includes more than $12 billion to reduce the school property tax rate for homeowners and business properties; an increase to the homestead exemption from $40,000 to $100,000; and savings on the franchise tax for small businesses. It would also include a so-called “circuit breaker” program for residential and commercial properties valued at $5 million and under. The program would be piloted for three years, as reported by The Texas Tribune.

The agreement brings a much-needed breath of fresh air following a period of unyielding stalemate between the House and the Senate during the initial special session. Disappointingly, the session concluded without any legislation being passed due to both chambers’ reluctance to find common ground.

“It has been a long road, but this is a great day for all property owners,” Patrick said. “It may have taken overtime, but the process has produced a great bill for homeowners and businesses.”