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Senate Finance met on March 20 to discuss SB 5 (Parker) and SJR 3 (Bettencourt).

 

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.

 

CSSB 5 (Parker) Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property a person owns that is held or used for the production of income.

  • Committee substitute adjust exemption structure
  • Credit will be administered pro-rata for up to 20% which eliminates carry forward provision
  • Adjusted credits to $525 million per year
  • Reporting requirements updated to facilitate streamline of program
  • CS adopted
  • 15 ayes – 0 nays passes to full Senate

SJR 3 (Bettencourt) Proposing a constitutional amendment to increase the amount of the exemption of residence homesteads from ad valorem taxation by a school district.

  • Committee substitute from $40 – $70k will be retroactive  to Jan 2023
  • All three in here now includes $20k in homestead exemption, SB 5 language will be included and previous increases for over 65 and disabled that didn’t get full benefit
  • SB 3,4,5 are now all enabling legislation
  • Hinojosa – is $30k for disabled and over 65 is on top of $70k homestead?
    • Yes, its on top, grand total of $100k for over 65
  • Hall – is this the first step to ending school property tax?
    • Compression that started in SB 2/HB 3 has continued and as long as will of body to continue it will
    • Blowing out floor on compressed rates (700 districts frozen on maximum compressed rate)
  • Hall – this is not permanent reduction, if action is not taken to follow it up then it taxes can go up?
    • Huffman – Outside spending limit but would be part of budget
    • Huffman – State will make up to schools
    • Huffman and Bettencourt both say yes this is an ongoing thing
  • Hall – how do we stay under spending limit?
    • Huffman – not anywhere close to spending pay as you go but will not be in spending limit
    • Huffman – confirms we stay under the spending cap with this legislation
  • CS adopted
  • 16 ayes- 0 nays passes to full Senate