CORPUS CHRISTI, Texas — After months of back and forth, the state's top leaders have finally reached a deal on property tax relief.
Lt. Gov Dan Patrick and Speaker of the House Dade Phelan said the proposal is the biggest property tax cut in Texas history, coming in at $18 billion.
The tax cut includes a $100,000 exemption for homeowners and a funding increase for schools, which will allow districts to lower school taxes.
The plan benefits both residential and business property owners by directing $12 billion into local school districts, something Nueces County Assessor/Collector Kevin Kieschnick says is a good thing.
"This is for the school tax rate which actually is significant. It's 53 percent of your tax bill more or less across the state of Texas," he said.
Other aspects of the bill include a 20 percent circuit breaker on appraised values for non homestead properties, valued at $5 million and under, including residential and commercial properties.
Savings on the franchise tax for small businesses and the creation of newly elected positions on local appraisal boards are also part of the bill.
"It'll help everybody across the board," he said. "And of course it brings that amount down. If you don't have an exemption and now you do well that's a hundred thousand dollars less the taxable value you're paying your taxes on."
Kieschnick says the plan could be great news for people on fixed incomes, the elderly, and people who can't afford the ever increasing taxes that we pay.
Dist. 32 Texas Representative Todd Hunter said the plan gives many Texans much needed relief.
"We've got some of the appraisal controls, you've got the homestead exemptions, you've got the cuts. So overall it looks like a hybrid but it looks like Texans are going to really, really have some relief," he said.
Hunter said it's likely the legislature will approve the proposal.
"They wouldn't have announced it unless they spent some time and have pretty good agreements. So it's good news. Property tax relief is on it's way," he said.
The Corpus Christi Independent School District said they will wait for details and a final vote before commenting. The committee hearing on the property tax cut bill is slated for tomorrow in Austin, and a vote is expected sometime this week.
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