It Lives!
State lawmakers just can’t seem to buck the 88th Texas Legislature. Property tax reform died yet another death with the end the 1st special session of the 88th Legislature on June 27. With the start of the 2nd special session, which began that same day, lawmakers have another opportunity to reach a compromise on how they want to achieve their common goal of reining in property taxes.
The governor called for legislation that would:
“…put Texas on a pathway to eliminate school district maintenance and operations property taxes.”
“…cut property tax rates solely by reducing the school district maximum compressed tax rate in order to provide lasting property-tax relief for Texas taxpayers.”
Earlier this week, the Texas House Ways & Means Committee passed its own version of property tax reform, HB 1, which sticks to the chamber’s plan from the first special session.
The Senate also continued its strategy from the first special session: crusading for increased homestead exemptions. In fact, the bill passed by the Senate earlier this week was nearly identical to the legislation passed by the chamber late in the first special session.
The current senate proposal, SB 1, calls for:
Additional compression.
Increasing the homestead exemption from $40,000 to $100,000.
Correcting statutory problems preventing over-65 Texans from receiving the full benefits of the homestead and over-65 homestead exemptions.
Further restricting year-over-year growth of school district maintenance and operations taxes from the current 2.5% to 1.75%.
Expanding eligibility for state franchise tax exemptions by raising the maximum annual revenue from $1 million to $2.47 million.
NEW in the 2nd special session: One-time pay supplemental payment for teachers.
Both the House and Senate will convene today—although more definitive action in the House isn’t likely until after the 4th of July holiday next week.
As time passes, pressure to reach an agreement rises. Lawmakers must pass any laws related to property taxes by the end of August in order for a required constitutional amendment to make it on the November ballot.
Constitutional Amendments
A property tax-related proposal would be the fourth constitutional amendment Texas voters could expect to see on their November ballots.
Currently, three are expected on the ballot. Those ballot measures will correspond to the following Joint Resolutions:
SJR 75: Proposes funding to support projects that would fortify the state’s water infrastructure.
HJR 125: Proposes funding to support projects that would fortify the state’s broadband infrastructure.
HJR 126: Proposes a constitutional amendment protecting the right to engage in farming, ranching, timber production, horticulture, and wildlife management.
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