Tuesday is the last day of the special session of the state legislature called by Governor Greg Abbott, but lawmakers have not reached a deal to reduce property taxes. Abbott listed property taxes and border security as his priorities.
"We must cut property taxes. During the regular session, we added $17.6 billion to cut property taxes. However, the legislature could not agree on how to allocate funds to accomplish this goal. Texans want and need a path towards eliminating property taxes. The best way to do that is to direct property tax reduction dollars to cut school property tax rates," Abbott wrote in a statement when he called the session.
During the special session, the Texas House passed a bill that would send $12 billion directly to school districts. Abbott has supported that plan to "buy down" school property taxes and says it would put Texas on a path toward eliminating school property taxes entirely.
"In Texas, we go big and we make sure we will accomplish our big vision," he said at a Texas Public Policy Foundation event earlier this month. "We don't do things half-heartedly. We think about, 'What is the big way to go? What's the real solution we need? We set our minds on achieving that solution and then we go for it."
The Texas comptroller says the state has a budget surplus of almost $33 billion. Abbott has said he wants the legislature to use half that money to lower property taxes.
As the state's population grows, Abbott said Texas will see increased sales and franchise tax revenue.
"My point is we have continued revenue streams," he said.
The Texas Senate bill would increase the homestead exemption from $40,000 to $100,000. Lieutenant Governor Dan Patrick says that increase would save the average homeowner more than the House plan.
"You see the stories that 60% of Americans have less than $1,000 in the bank. This is real money for real people, hard-working people," he said at an event in Dallas.
Patrick says the House plan would have more benefit to businesses and "the wealthiest homeowners." He said the Senate plan would save homeowners $1,200 to $1,450 a year; the House plan would save homeowners $740.
"What do you think the people want?" he asked.
The Texas House adjourned as soon as its property tax bill was passed, so the two sides cannot negotiate. Abbott has said he expects several special sessions to be necessary.
The two chambers will return in September for the impeachment trial of Attorney General Ken Paxton. The Texas House and Paxton's lawyers will present their cases to the Texas Senate, which will vote on whether to convict him on each article.
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