The House and Senate have adjourned sine die, concluding the 88th Second Called Special Session. Below is an overview of the action taken by the House and the Senate from this session.
On 7/10, Governor Abbott expanded the Second Special Session call to include:
- Legislation relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; and
- Legislation relating to the amount of total revenue exemption for the franchise tax and the exclusion of certain taxable entities from the requirement to file a franchise tax report.
House & Senate Action
The Senate unanimously passed SB 2 (Bettencourt) on 7/12 with three amendments. The House passed the bill (132-4) on 7/13 with no amendments.
SB 2 (Bettencourt) Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.
- $18b plan; reduces maximum compression rate 0.107 cents
- Includes $100k residential homestead exemption
- State will hold harmless school districts including any funding deficits resulting from the exemption
- Includes a catch-up provision for the over 65 and disabled exemption holders
- Creates a Circuit Breaker Pilot Program 20% limitation on appraisal value increases for non-homesteaded properties under $5m; which will expire December 2026
- Substantial changes to appraisal boards; includes 3 new elected appraisal board members starting May 2024; re-elected for four-year terms in November 2024
- Selection of ARBs goes back to county board of directors; to hire an ARB, two citizens will have to approve of the members as well as a majority
- Prohibits elimination of local options homestead exemption for four years
- I&S hold harmless to include voter authorized, but not yet issued debt
The Senate unanimously passed SB 3 (Bettencourt/Parker) on 7/12 with no amendments. The House passed the bill (127-5) on 7/13 with no amendments.
SB 3 (Bettencourt/Parker) Relating to the amount of the total revenue exemption for the franchise tax and the exclusion of certain taxable entities from the requirement to file a franchise tax report
- Doubles amount to revenue exempted from franchise tax to $2.47m; will remove 67k businesses from the tax roll
- Eliminates requirement/fee for taxable entities who do not have to pay tax to file a zero-tax form
The House passed HJR 2 (Meyer/Metcalf) (132-5) on 7/13 with one amendment. The Senate unanimously passed the resolution on 7/13 with no amendments.
HJR 2 (Meyer/Metcalf) Is the constitutional amendment for SB 2 (Bettencourt)
- Exempts full $18b appropriations from the constitutional spending limit
- Sets the 20% Circuit Breaker Pilot to expire in December 2026; in alignment with SB 2