AUSTIN (1080 KRLD) - In a show of solidarity Governor Abbott, flanked by Lt. Governor Dan Patrick and House Speaker Dennis Bonnen said they were confident the Texas House and Senate would get him a property tax reform bill (Senate Bill 2) that would cap property tax revenue growth at 3.5 percent for local governments and 2.5 for school districts.
The bill passed by both chambers is currently under debate in conference committee by representatives of the Texas House and Senate.
Abbott also acknowledged that the legislation wouldn't actually reduce taxes. "Even with the passage of that law, even with me signing that law into effect…what we'll really achieve is to slow the growth of skyrocketing property taxes in Texas."
To create property tax relief Governor Abbott is again pushing a plan endorsed by both the Lt. Governor and the State House Speaker. "We're talking about increasing the sales tax by a certain percentage (from 6.25% to 7.25%) and dedicating that revenue to driving down the property taxes paid by Texans." The measure is expected to raise about $5 billion per year to lower school district tax rates.
Abbott explained that if they are able to pass a sales tax increase to drive down property taxes "we're going to be able to leave this Capitol and inform our fellow Texans that their property tax bills next year are going to be less than they were this year."
The bill that would raise the sales tax is House Joint Resolution 3. If passed by a two-thirds vote in both chambers it would then be up to Texas voters to decide in November. State House Speaker Dennis Bonnen said the Texas House will take up the measure. "Next week we plan to have a vote on reducing property taxes by at least 15-cents for homeowners…that'd be $250 on a $200-thousand home in the Texas House. We have the opportunity to create a real reduction that people can see and they can feel."
Lt Governor Dan Patrick used a football analogy to explain how close they were to bringing Texas property owners long-term relief. "I think we're at the 5 yard line. All we have to do is get the ball across the goal line. Senate Bill 2 will now go to conference and we will come out with a bill the Governor can sign, that both chambers can support. We will pass out HB3 (school finance reform) on Monday." As he looked at Speaker Bonnen he added, "I believe you're taking up the sales tax…next week and then we will get to conference on those issues."
