AUSTIN (Nexstar) — Top Texas Republicans agree property tax relief is their top priority, but remain sharply at odds about how to get it done.
On Thursday, House Speaker Dade Phelan unveiled what he said would be “the largest property tax decrease in history of state of Texas.” It’s in House Bill 2, the coveted bill number carried by Ways and Means Committee Chair Morgan Meyer, R-Dallas.
HB 2 would also decrease the amount that school districts can tax a home, lowering the maximum compressed tax rate by 15 cents.
“That will bring the overall property tax relief to well over 17 billion, the largest property tax cut in the history of the state of Texas without argument,” Phelan said. “House Bill Two will be the avenue in which we hopefully get that done and get it to the governor’s desk.”
The arguments, however, came quickly.
On the same stage just hours later, Lt. Gov. Dan Patrick publicly grilled Phelan’s property tax plan.
“I think the intentions of the House are good. But that would be a disaster and undo everything we’ve done that has brought property tax relief,” Patrick said. “The appraisal cap will undermine what we’ve accomplished. And what did we accomplish? We’re controlling local government spending to three and a half percent by counties and cities, and two and a half percent in our school districts. That’s how you lower property taxes.”
His chamber has its own plan with the support of all 31 senators.
SB 3 by State Sen. Paul Bettencourt would increase the homestead exemption by 75% to $70,000. That’s the amount of a home’s value that is exempt from property taxes. The homestead exemption is currently $40,000.
“An exemption is the most powerful tool we have,” Bettencourt said. “That technique of an appraisal cap is, at best, a one-year break that shifts the tax burden off to other folks that then raises the tax rates…that homestead exemption will be there helping you every year for the next five decades. And that’s why the Senate unanimously backed the homestead exemption bill because that’s the type of tax relief we need.”
Bettencourt estimated the homestead exemption increase will translate to savings of $341 per year for the average homeowner.
House Democrats say they prefer Bettencourt’s plan to their own chamber’s, too.
House Democratic Caucus Chairman Trey Martinez Fischer, however, would prefer the legislature not prioritize property tax relief at all.
“We are very laser-focused on increasing our investments in public education, stopping the defunding of education through private school vouchers, and to make sure that we’re paying our teachers and educators living wages,” Fischer said. “It’s not that Democrats are against tax cuts. Democrats pay taxes too, but Democrats want to fund the essential functions of government. And that’s to educate our future leaders of tomorrow. If we’re not doing that, then what are we doing up here?”
Senator changes bill after backlash over limits to home sales to Chinese citizens in Texas
A bill that aims to restrict Texas land sales to citizens from China, Russia, North Korea and Iran drew a crowd to the Capitol on Thursday.
More than 100 people testified at a hearing in the Senate chamber for Senate Bill 147. The bill from State Sen. Lois Kolkhorst, R-Brenham, aims to address fears from some top Republican officials that foreign adversaries could endanger state interests by buying Texas land.
SB 147, as originally filed, called for banning individual citizens from buying any Texas real estate. Critics of the bill said that could affect immigrants trying to purchase a home while they work through the years-long process of seeking citizenship.
Most of the people who testified at Thursday’s hearing spoke in opposition to the bill. One of them was Wei Li, who told lawmakers that he came to the U.S. in 2006 and now works as a college professor. He said he’ll be eligible to apply for citizenship later this month.
“This will be 17 years after I moved to the U.S.,” he said in his testimony. “Long journey, but deep down I know I’m already Texan long while ago. I can cook perfect, moist brisket. I even understand how to use ‘bless your heart’ properly.”
“But SB 147 and SB 711 are a slap on my face. It scoffs at me,” he continued, his voice breaking, “Sorry, you’re not Texan. People like you will not even deserve to own a home.”
Similar concerns have sparked rallies at the Capitol and criticism of Kolkhorst’s bill. Kolkhorst said after listening to the concerns, she changed the bill.
“Listening to people, we’ve met with so many people and [heard] their concerns. That’s why we changed the bill,” Kolkhorst said.
“You can buy a home. You do not have to be a legal permanent resident or a citizen. Anyone can buy a home and homestead,” Kolkhorst said, describing the committee substitute she filed.
Sen. Kolkhorst said national security is the focus of SB 147. She said the bill aims to “secure national security for our state and our country because of the role that Texas plays in national security with all of our military bases and strategic refineries and different things we have here.”
The bill has backing from prominent Republicans, including Gov. Greg Abbott. After the changes to the bill, Congressman Michael McCaul, R-Texas, who chairs the House Committee on Foreign Affairs sent a statement applauding Kolkhorst’s efforts.
“I’m thankful Texas has champions like Senator Lois Kolkhorst working in our state legislature to protect our great state and its citizens from those who would do us harm,” McCaul’s statement read.
It builds on the Lone Star Infrastructure Act passed by state lawmakers in 2021. That bill cites “acts of aggression towards the United States, human rights abuses, intellectual property theft, [and] previous critical infrastructure attacks” among the reasons to ban businesses from those four nations from connecting to the power grid, water and chemical plants, communications and cyber systems.
State Rep. Gene Wu, D-Houston, voted for the Lone Star Infrastructure Act, but said that SB 147 goes too far.
Before Thursday’s hearing, he posted a picture on Twitter, showing a section of the Texas Constitution. “The Texas Constitution itself forbids discrimination based on NATIONAL ORIGIN,” Wu’s post noted.
Kolkhorst said the criticism led to important changes to the bill.
“Senate Bill 147 with its revisions, allows anyone to buy a home and to declare that their homestead,” Kolkhorst said.
“We’ve made changes. And that’s the beautiful thing about America and Texas is that we come together and we discuss those, freedom of speech, being able to testify on a bill,” she said.
Doctors could get a Texas medical license in 10 days or fewer. What it means for you
Dr. Niki Davis logged on through her computer from Salt Lake City, Utah.
The patient she treated started the telehealth appointment using their phone or computer in Austin. It’s how Davis now treats most of her patients.
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