Texas House lawmakers in Texas have presented a business-friendly property tax cut package, sparking a debate with the Senate on how to lower the state’s high property taxes. The House’s proposal involves sending billions of dollars to local school districts to lower tax rates for homeowners and business owners. Another bill aims to give business owners tax breaks on personal property used for their businesses.
Governor Greg Abbott has declared property tax cuts an “emergency item,” allowing fast-tracking of legislation to cut taxes. The debate between the House and Senate centers on how to use an additional $3.5 billion earmarked for tax cuts, with the House focusing on reducing tax rates through “compression” and targeted breaks for businesses.
The Senate’s proposal includes boosting the state’s homestead exemption for homeowners while also providing tax breaks for businesses. Both chambers have shown interest in delivering targeted tax breaks to businesses, but neither proposal offers relief to the state’s 4.2 million renting households.
Texas lawmakers plan to spend at least $51 billion to maintain existing tax cuts and provide new ones over the next two years, fueled by large state surpluses. Budget analysts warn that maintaining these cuts during an economic downturn may be challenging.
The Texas Tribune Festival will take place in November, offering discussions on various topics shaping the state’s future, including education, economy, health care, technology, and public safety. Sponsored by JPMorganChase, the event promises to be a platform for conversations on the state’s key issues.
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