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On March 14th, LT. Governor Dan Patrick held a press conference to discuss property and business tax reform. A recording of this event will be posted here.

This report is intended to give you an overview and highlight the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

Lt. Gov. Dan Patrick

  • 20 years ago, testified at the capitol against rising property taxes, now as LT. Gov. learned that appraisal caps don’t work; not being critical of house plan
  • Excited that House and Senate have put $15B into reducing the tax burden on citizens
  • Excited that the House is with the Senate like in the past by increasing homestead extensions
  • In 2019 legislation passed SB 2 and HB 3 that worked together to save Texas’ taxpayers over $11B through a combination of compression on school taxes, combination of homestead exemption (according to Dale Craymer, TTARA)
  • Dale testified yesterday and agrees with Senate, that the appraisal cap would reverse what we did in 2019
  • Excited to work with house on compression and other facets of their bill, but we are focused on the homestead exemption and compression
  • During my campaign I said that we are going to increase homestead exemption to $70K, have 31 senators all in support, would like to see homestead exemption go to $100K
  • The state doesn’t have any money it’s the taxpayer’s money
  • If we don’t manage money correctly, we will put future legislatures in jeopardy

 

Sen. Bettencourt

  • First surprise we have gotten to 16.5B in tax relief for all Texans all 31 senators in agreement
  • Exemptions are the most powerful tool you can use as a tax rider
  • Picking up for over 65 years so they get the full 100% credit for the 25% increase; now going to triple the over 65 exemptions from 10K to 30K, you can take that exemption with you wherever you go or move to in Texas
  • $5.38B of additional compression is targeted at floor of the property tax system, using a technique that will help with recapture
  • Homeowners will see savings of over $500 over 65 homeowners will see savings of over $1000

 

Sen. Parker

  • Another $1.5B in business tax relief comprised of two pieces
    • The business personal property tax, exemption is going $25K
    • $1.05B in inventory tax reduction, a 20% reduction in inventory tax bill
  • Listening to all Texans and spending money as wisely as we can to give Texans permanent relief

 

Sen. Huffman

  • This is a great way to give Texans back their money, we do not want to become California, so we have to look to the future

 

Questions & Answers

 

Q: Why not increase the homestead extension across the board?

  • Patrick – Because we need to be smart about it, when I leave the capitol, I would like to see it go up to $100K

 

Q: How do you foresee working with the housel if you have separate ideas?

  • Patrick – Appraisal values are not as significant as they once were, we’re going to work with them it’ll be fine

 

Q: How do you make sure this doesn’t shift the tax burden on to small business and renters?

  • Bettencourt – This is all school tax relief and lowering those exemptions for just the school taxes
  • Huffman – The state will fill the bucket so the local gov doesn’t have to

 

Q: How do you address the question that if the value of my home goes up, I won’t see the 70K in relief?

  • Bettencourt – The exemptions help them by preventing how much they pay, and we help them by compressing the tax rate; think they’ll be happy for two years; this is all about the growth of government
  • Patrick – We can’t control rates, so we’ve taken appraisals out of the equation; btw the house voted for these bills in 2019

 

Q: Seems the senate attitude for appraisal caps was a bit different, what’s the difference now?

  • Patrick – We used to think that, but we learned that wasn’t the answer; we learned and listened that it didn’t work
  • Bettencourt – These debates have happened in other states, in the last 15 years many districts have frozen their values, things have changed

 

Q: Governor Abbott has called for business tax exemption for 100k, but you have it at 25K what’s the line of thinking there?

  • Bettencourt – After discussion with business representatives they asked for it in inventory tax reduction, Texas is one of the highest in the nation on inventory tax