Local Tax Issues

Texas Gov. Calls Special Legislative Session, Asks to Eliminate Property Taxes

Texas Gov. Calls Special Legislative Session, Asks to Eliminate Property Taxes

Texas Governor Greg Abbott (R) has called a special session in order to ask the state legislature to eliminate property taxes. 

This news comes after state lawmakers were unable to agree on how to spend surplus budget funds to deliver property tax relief in a prior special session. 

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Photographer: P.A. Thompson/Getty Images

According to the Austin American-Statesman, the new special session is set to begin today, June 28. Yesterday, Abbott announced, "After yet another month without the House and Senate sending a bill to my desk to cut property taxes, I am once again putting the agreed-upon school district property tax rate cuts on the special session agenda."

Previously, Abbott requested that lawmakers approve property tax relief by focusing solely on driving down school property tax rates. The Texas House of Representatives passed a plan that committed $17.6 billion of the Lone Star State's 2024-2025 budget to tax relief via tax compression. 

The Senate, however, under the leadership of Lieutenant Governor Dan Patrick (R), wanted to increase the state's homestead exemption to $100,000 -- ultimately all bills related to property tax relief were left dead in the water. 

Most recently, the latest plan, Senate Bill 26, was set to raise the homestead exemption for owner-occupied houses to $100,000, with homeowners 65 and older seeing an extra $40,000 exemption. Furthermore, according to the American-Statesman, approximately 67,000 Texas small businesses would have gained a state franchise tax exemption.

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Credit: Denis Tangney, Jr.

Now, the Governor is not only seeking to lower property taxes statewide but ultimately to eliminate "a property tax in Texas."

The Texas Tribune shared details of another recent proposal, outlined in a letter penned by Representative Dustin Burrows (R-Lubbock) on June 23. He suggested limiting the annual growth of individual property tax bills paid to school districts, municipalities, and counties, stating that it would “protect property taxpayers from huge spikes from year to year and provide them with a more predictable property tax bill.

Property taxes have been a hot-button issue in Texas for some time. In September 2022, City Council members in Fort Worth fought back against unpopular property tax hikes

The Texas Senate has approved a measure that grants property tax relief and new perks for teachers. Learn more here.

**UPDATED 6/29/2023 at 8:44 a.m. EST**

What do you think will happen during the special legislative session?

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Feature Image Credit: Bo Zaunders/Getty Images

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