Republican senator says homeowners will see ‘real’ property tax cut, while Texas’ largest corporate tax break program is ‘toast’
Houston Senator Paul Bettencourt says more property tax reforms may be on the way after the state’s largest corporate tax break program expires.
DALLAS – Texans will have the option to allow homeowners to lower their property tax next year. If passed in May, the constitutional amendment would increase farm exemptions from $ 25,000 to $ 40,000.
While some fear the potential lowering could be swallowed up by rising property values, the Republican senator behind the move, by definition, says it’s a real property tax lowering as the exemption increases.
“And that’s a permanent cut of $ 176 a year for as long as you own the house. And that means well over $ 5,000 for a lifetime, because that effectively follows you anywhere, ”Senator Paul Bettencourt told Inside Texas Politics.
The Houston Republican calls the cut a powerful tool, but says that after the state’s largest corporate tax relief program, which the Texas Comptroller Office says will take place late next year, more property tax reform could be on the way. Known as Chapter 313, it allows school districts to temporarily cap the appraised value of a property to encourage business development. However, the property owner must create a certain number of permanent full-time jobs.
Passed in 2001, many homeowners are upset that their property values and taxes are rising while some businesses are getting huge tax breaks. And Senator Bettencourt says the program has seen some serious abuses over the years, even telling Inside Texas Politics that some companies benefit from it and only create one job. He says there is no way to extend the existing 313 program, and even goes so far as to call it “toast”.
“It doesn’t make anyone happy to get it wrong except the people who get paid, they get a windfall and produce a job, and that’s not what the program is about,” the Republican said. “If we don’t use the economic development funds responsibly, we won’t have a program.”
And now that lawmakers have returned home after the third special session ended, Bettencourt pointed out that there is little appetite for a fourth special session and that lawmakers will likely not meet again until the next regular session in 2023.
“I think the chances are pretty low at this point. And after participating in a ten-month legislative cycle, I’m ready to live long and develop as a normal person with normal people in the district, “said Bettencourt, holding up the Vulcan salutation.
Chapter 313 (Comptroller Office): Chapter 313: Trade Tax Restrictions for Development (texas.gov)
SB 1 (Increasing Homestead Exemption): Texas Legislature Online – 87 (3) story for SB 1
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