Texas Senate passes property tax reform bill, calls on House to return to Austin

Star Local Media
By Bethany Blankley | The Center Square contributor
June 20, 2023

(The Center Square) – Texas Lt. Gov. Dan Patrick on Tuesday called on members of the state House to return to Austin and pass a property tax relief bill the Senate unanimously passed 30-0.

SB 267 and SJR 2 provide a “once-in-a-lifetime record $18 billion property tax plan to cut homeowners, business owners, and helps school ISD debt budgets by $642 million,” it’s author, Sen. Paul Bettencourt, R-Houston, said in a statement. The bill provides over 5 million homestead owners “an eye-popping savings of $1270-$1350 the first year and up to $1500 the second year for over-65 disabled homeowners.”

The bill also lowers the school ISD rollback rate 30%, from 2.5% to 1.75%, which he said will lower local property taxpayer's tax bills by billions of dollars a year.

At a Tuesday news conference, Bettencourt said it’s “the best tax package we have produced and is a product of many discussions over time.” It excludes $600 million in revenue loss factored into the fiscal note for the future for franchise taxes, he added, saying the Senate plan is “really a net $18.6 billion plan.”

The bill would double the franchise tax exemption and eliminate a nuisance tax for 1.7 million businesses, among other measures the Senate already passed.

Patrick said, “we want in all sincerity the Texas House to return and pass this bill. It will give homeowners a 41% cut in their school taxes. It will give businesses the biggest tax cut they will ever have. It creates new paths to save small businesses money.”

He also said it was “really important to see 31 senators … stand together to give homeowners the biggest tax cut in history and business owners their biggest tax cut.”

Sen. Royce West, D-Dallas, said, “the Lt. Gov. is right. There have been issues in the past we have not agreed upon, but this is one that we agree upon for all of our constituents. My constituents understand getting a $100,000 homestead exemption.”

Sen. Jose Menendez, D-San Antonio, said the bill “represents the best position to all Texas homeowners. It would be easy to say, ‘let’s go and enjoy our summer, let’s just do what someone else wants us to do,’” referring to the House leaving three weeks ago after it passed a bill Gov. Greg Abbott wanted to pass.

“It takes determination, it takes courage, political will to do the right thing,” Menendez continued. “I believe the reason you have us all standing here before you is because this is the right thing for Texans. At the end of the day, people need to feel like they’re not renting their homes from the state … they should be able to enjoy their home and their property and be able to afford it.”

Sen. Jon Whitmire, D-Houston, said, “I want to thank the Texas House for bringing the Texas Senate together.”

“Enough’s enough,” he said, referring to the House leaving town while the Senate’s been working every day for weeks.

“People do not understand the process in Austin,” he said. “We’ve got to come back and ... support property tax reduction. The provisions in this bill are a starting point: 31 senators from urban, rural areas are sending a huge message. ...

“I spent 10 years in the House,” he said. “Enough’s enough. It’s time for the [House] Speaker [Dade Phelan] and the House to come back to Austin. We’re not going to get it done until both houses are in Austin and working.”

Around the same time of the news conference, Phelan announced on social media that he created a Select Study Committee on Sustainable Property Tax Relief comprised of 13 House members and three members of the public who will “consider issues that broadly affect property taxes and make recommendations for long-term use.”

Critics have already asked why he didn’t form the committee prior to the regular legislative session, and only after having left at the beginning of the special legislative session. Others referred to him as “drunk Dade” on social media, referring to the open bar set up in the hall outside the Speaker’s office in the House during officials proceedings, and after Attorney General Ken Paxton called on him to resign for appearing to be intoxicated. Hours after Paxton's resignation call, a committee appointed by Phelan, and the House, voted to impeach Paxton over a separate matter.

Patrick said the Senate has been seriously working on property tax relief for six months.

“The governor’s getting 71% of what he asked for … anytime you get 70/30 you’re getting a victory,” he said. “The governor has said he will sign any bill the House and Senate agree upon all the House has to do is pass it.”