In a swift special session Tuesday, the Texas House of Representatives gave their counterparts in the Senate an option: take their proposal to use $12.3 billion to reduce school property taxes statewide or nothing passes this session.
The move — hailed as the biggest property tax relief plan in Texas history — came just hours after Gov. Greg Abbott called the special session Monday evening.
Lt. Gov. Dan Patrick, who serves as presiding officer of the Senate, and House Speaker Dade Phelan have been at odds lately, and Phelan threw down the gauntlet Tuesday, demanding that Patrick take the deal or nothing would be accomplished this session. Ultimately, Abbott sided with Phelan.
“It provides more property tax cuts than any other proposal at this time,” Abbott said.
Patrick said late Tuesday he stands by the Senate’s version of the bill.
“Governor Abbott has finally shown his cards,” Patrick said in a public statement “He chooses to give homeowners 50 percent less of a tax cut, nearly $700 a year, to give corporations more. This is not what homeowners expected when they voted for him … While the House may have thrown in the towel, the Senate continues to work. The Governor should feel free to expand the call to include other critical issues for our state.”
Another House bill passed Tuesday would increase the minimum sentence for someone convicted of human smuggling and operating a stash house to at least 10 years under state law, according to the Texas Tribune.
The property tax cut and tougher laws on migrant smuggling were the two priorities Abbott mentioned when he called the special session Monday.
Texas’ HB1 And Property Tax Cuts
So what does the House of Representatives’ property tax cut mean for Texas homeowners?
School taxes would be reduced across the board for property owners, including businesses that own commercial property, investors who own rental properties, and people who own their primary residence.
The Senate passed legislation Tuesday to allow homeowners a $1,246 annual homestead exemption and over-65 and disabled homesteads a $1,462 per-year permanent savings, according to Sen. Paul Bettencourt (R-Houston).
The House abruptly adjourned the session Tuesday after the legislation passed, meaning the chamber can’t meet for the rest of the special session. If the Senate doesn’t accept the House version of the bill, no bills get passed this session.
