Gov. Abbott Vs. Lt. Gov. Patrick on Texas Property Tax
Texas homeowners should pay fewer taxes to property tax cuts, but how much exactly will you gain from each side’s proposal?
Gov. Greg Abbott and Lt. Gov. Dan Patrick are still in debate for the $17.6 billion in tax relief for Texan property tax. Due to his pledge of significant property tax reduction for Texans, Abbot may veto bills if the Texas House and Senate have not come to a consensus until Sunday. The number and type of property owned will determine how much tax Texans could save under the proposed property tax plans from each side.
Lt. Gov. Dan Patrick strongly supports SB 1 as the bill with the largest sustainable tax cut. And as for Gov. Abbott, his view of the Texas House property tax relief is much better than the Senate’s.
Different Perspectives of Texas Property Tax
Abbott’s property tax compression plan is to offer school financing to lessen property taxes on homeowners to cover operating costs. This sets a path for the future elimination of Texas property taxes.
Patrick contends this by exhibiting a calculation on property tax savings comparison in its first year. The calculation shows that in the Texas House’s proposal, homeowners would save an average of, $710.01 in property taxes and as for the Senate’s proposal, the property taxes will be lower by $1,245.93 ($1,416.29 for homeowners 65 and older). Also, Patrick stated that the elimination of property tax will lead to a significant increase in the State’s sales tax rate
The plan put out by Lt. Governor Patrick and the Texas Senate provides some of the extra funds from rising sales tax receipts towards the reduction of tax rates, but it also more than doubles the state’s present homestead exemption.
For homeowners under the age of 65 and those 65 and above, the Texas homestead exemption would rise to $100,000 and $110,000, respectively.
Which is better for you, the Texas Senate’s plan or Abbott’s plan to abolish property taxes through compression, which, on average, saves homeowners more in the first year?
A homestead exemption lowers the property’s taxable value. Currently, Texas residents may have their taxable home value lowered by $40,000 due to this.
According to the numbers Patrick provided, increasing the exemption to $100,000 would enable many Texas homeowners to save more in the first year of the property tax reductions. While presenting the property tax figures, Patrick mentioned that some homeowners might not save the additional $1,200.
- Since Texas requires the property to be the owner’s principal residence to qualify for the residential homestead exemption. This indicates that rental units owned by landlords would not be eligible for the higher exemption.
- The expanded homestead exemption would not apply to homeowners who have a property tax exemption in another state. To be eligible for the Texas general exemption, homeowners must declare that they are not claiming any other homestead exemptions, whether they are located in Texas or elsewhere.
Nobody is certain when the Texas property tax controversy will be resolved as it continues to stall. But according to Texas Gov. Abbott, the state House and Senate must reach a compromise. If the parties are unable to agree on Texas property tax relief, Abbott has stated that he will convene another special session.