Texas Governor Lieutenant Implements Property Tax Relief Package to Boost Benefits

SAN ANTONIO. Texas Senate leaders are proposing what they call the largest property tax relief package in the state’s history. Lieutenant Gov. Dan Patrick and other Republican upper house leaders held a news conference Tuesday announcing $16.5 billion in aid to Texans in the form of more homestead exemptions.

Although the aid is using half of the state’s record surplus to do so, political experts say it’s not necessarily the largest package passed by state lawmakers.

“Over a 12-month period, this is not a significant amount of money. It’s not nothing, but it’s not like it was some huge amount,” said John Taylor, chair of the political science and geography department at UT in San Antonio.

The bill will increase the homestead tax exemption to $70,000 on the taxable value of your home for school districts. The infield exemption for people over 65 will increase to $30,000 for a total of $100,000 for seniors.

The savings vary depending on the school district and the appraised value of your home, according to tax collector Bexar Co. Albert Uresti.

“A person living in Northside ISD who lives in an average $308,000 home will see a savings of about $357 per year compared to last year’s taxes. If you are a senior citizen, you will save $436 over last year,” Uresti told KENS 5. He estimates that seniors living in Southside ISD with a similar home value could save $626. He is pleased with the relief for citizens and says it will shift the burden of funding schools to the state.

While many bills have been filed to fund schools and pay teachers, Taylor says the property tax cut could affect the maintenance and operations portion of the tax rate.

“It will be a concern that we are not thinking about the long-term health and financial future of K-12 education in Texas. While some may object, we should also lower the property tax… it’s a real mystery,” adds Taylor.

The bill also provides property tax breaks for businesses, but Taylor worries the breaks can’t be passed on to tenants.

It differs from the bill filed in the Texas House, which focuses on capping home valuations to eliminate tax breaks. Taylor says a debate between the House and Senate is likely as Lieutenant Gov. Dan Patrick and Speaker of the House Dade Phelan disagree on their approaches.

“They both want to lower property taxes. The question is how they get there,” Taylor said.

Patrick said during a press conference that he wants to work with the lower house to get the bill passed, but does not appear to be interested in including valuation limits.

“The estimates are no longer as significant as they used to be, they are almost non-existent,” said Lieutenant Governor Patrick.

The bill is scheduled to be discussed in the Senate on Wednesday.