Homestead exemption increased

From Staff Reports

AUSTIN – Eliminating the state property tax and providing lasting property tax rate cuts were on the agenda for the second special session of the Texas Legislature, Governor Greg Abbott announced last Tuesday.

On Wednesday, the Legislature unanimously passed a tax bill that increases the homestead exemption and includes a pay raise for teachers.

“We achieved a great deal during the 88^th Legislative Session that I have signed into law, including laws to provide more than $5.1 billion for border security, hold rogue district attorneys accountable, and add $1.4 billion to make schools safer, but the job is not done,” Abbott said. “I am bringing the Texas Legislature back for Special Session No. 2 to provide lasting property tax cuts for Texans. During the five-month regular session, the Texas House and Texas Senate both agreed on cutting school district property tax rates, while the House wanted to add appraisal caps and the Senate advocated for increased homestead exemptions.

“The Special Session No. 1 agenda was limited to the only solution that both chambers agreed on – school property tax rate cuts. After yet another month without the House and Senate sending a bill to my desk to cut property taxes, I am once again putting the agreed upon school district property tax rate cuts on the special session agenda,” Abbott said. “Unless and until the House and Senate agree on a different proposal to provide property tax cuts, I will continue to call for lasting property tax cuts through rate reductions and working toward eliminating the school property tax in Texas. Special sessions will continue to focus on only property tax cuts until property tax cut legislation reaches my desk.”

The first special session Abbott called ended with both chambers unable to agree on how to provide property tax relief.  The House had passed its version of a property tax package on the first day and immediately adjourned for the remainder of the 30-day session.

The bill passed on Wednesday will provide a $2,000 pay increase for teachers working in urban school districts through the next two years, and a $6,000 increase for educators in rural areas.

The homestead exemption was increased from $40K to $100K.