CORPUS CHRISTI, Texas — An official vote in the House and Senate is expected this week at the State Capitol after Texas lawmakers struck a tentative deal Monday on how to provide property tax cuts.
Under the plan, $12 billion would go to school districts in an attempt to reduce school property tax rates.
Gov. Greg Abbott posted on Twitter saying he looks forward to signing the legislation into law.
Bottom line, the plan will save some homeowners thousands of dollars.
San Jacinto Title President Mark Scott said the move will ultimately reduce the amount of money residents will pay in property taxes.
"You think about that, the increase in interest rates slowing of the economy and we need to do everything we can to make homes affordable, taxes are the biggest hickey. We are all delighted they've reached some resolution," he said.
Texas homeowners will see their homestead exemption increase to $100,000 from the current $40,000, which means the value of your home that can be taxed will be lowered.
The average homeowner will also see school property taxes cut by a whopping 41 percent. So what does that mean for the residents?
The average home in Texas is priced at $331,000. Homeowners could save anywhere between $1,260 to $1,460 per year.
While paying less property taxes could serve as a incentive to buy a home appraisals are still high.
"It's going to take some time for all this to cycle through," he said. "There are really high interest rates now, so I think a lot of people are waiting. I think its going to take a while but anything we can do to reduce the burden on the homeowner is a good thing."
Del Mar College Accounting Professor Adelfino Palacios said the plan is a good thing in the long run.
"Income tax side, of course you will pay less property taxes so you won' t be able to deduct as much but overall the cash flow will be better for the individuals," he said.
Palacios said that if residents have not filed a homestead exemption with the appraisal district, he said now is the time.
"Cause that is where all the exemptions are applied, we have some people who have not applied for their homestead exemption, they need to go online and look at their file with the county," he said.
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