TEXAS, USA — Texas property owners could soon see the largest tax relief in state history.
Legislature leaders announced there is a deal on the table for an $18 billion property tax relief plan on Monday.
It's only a plan or proposition at this point as each chamber has to view it, vote on it and then Governor Greg Abbott would have to sign it to become law.
However, this is a huge step after there being no compromise for months.
"This is by far the largest reduction in property taxes anywhere across the United States and definitely in Texas, no question about it," said Representative Hugh Shine of District 55.
The Republican lawmaker, who represents much of Bell County, told 6 News he is pleased with the legislation and think it's a compromise of what both chambers want.
"I think if everything holds -- I think it's a good compromise," Shine said.
Lawmakers still have a chance to take a crack at the legislation, which stops short of providing a pay raise for teachers and relief for renters. He said some could try to make amendments to it starting as early as Tuesday.
According to a joint statement released by Lt. Governor Dan Patrick and House Speaker Dade Phelan, the plan includes:
- More than $12 billion to be spent on reducing the school property tax rate for homeowners and business properties
- Increases the homestead exemption from $40,000 to $100,000
- Non-homestead properties valued at less than $5 million will get a 20% circuit breaker on appraised values as part of a three-year program
- Savings on the franchise tax for small businesses
- Creates newly elected positions on local appraisal boards,
Shine told 6 News he originally proposed adding the positions to the board in a previous bill and is happy that it is being considered in the new proposed legislation.
The republican lawmakers' biggest concern is if the state can sustain the tax relief deal they're trying to give to Texans.
"We can always come back," Shine said. "We can always modify it. We can always improve it. The most important thing, is that I'm always concerned about can we sustain the $18 billion in reducing the school tax rate for maintenance and operations in the next biennium two years from now? I'm always concerned about that. As long as the economy is strong, as long as retail sales continue to come in the severance tax money comes in, we can continue to do that and I hope we can."
He knows that it's going to require many zeroes to get it done.
"The more exemptions you get, the more money you got to pump into the system," Shine added.
Texas Gov. Greg Abbott addressed the agreement on his personal Twitter account and released the following statement:
"I promised during my campaign that the state would return to property taxpayers at least half of the largest budget surplus we have ever had. Today's agreement between the House and the Senate is a step toward delivering on that promise. I look forward to this legislation reaching my desk, so I can sign into law the largest property tax cut in Texas history."