During an event in the Houston suburb of New Caney on Aug. 9, Texas Gov. Greg Abbott ceremoniously signed the $18 billion tax cut package for Texas property owners, nearly three weeks after he officially signed it into law. The package promises to deliver the largest property tax cut in Texas history.
"Today, I am signing a law that will ensure more than $18 billion in property tax cuts—the largest property tax cut in Texas history," Abbott, a Republican, said, according to a press release from the governor's office. "If passed by voters this fall, Texas homestead exemptions will rise to $100,000, senior homeowners will be protected from being priced out of their home, the small business exemption for the Franchise Tax will double, and Texas small businesses will be protected from excessive appraisal increases.”
The release said that the Lt. Gov. Dan Patrick; House Speaker Dade Phelan (R-Beaumont); State Sen. Paul Bettencourt (R-Houston), who authored the two pieces of legislation that form the package; and State Rep. Morgan Meyer (R-University Park) in addition to other state lawmakers joined Abbott at the signing.
“None of these monumental changes could have been accomplished without the hard work of Lieutenant Governor Patrick and Speaker Phelan,” Abbott said, per the release. “We all came together to offer Texans the property tax relief they so desperately deserve, and I am proud to sign these new laws today."
Citing a Texas Tribune report, Houston Daily reported on July 26 that Abbott made Texas' distinction as having some of the nation’s highest property taxes one of the key platforms of his 2022 bid to remain in the Governor’s Mansion. The Austin-based online media outlet reported that Senate Bill (SB) 2, the property tax cuts bill, and SB 3, a franchise tax relief bill, passed both chambers of the Texas Legislature last month during a special session of the Texas Legislature, with House Joint Resolution (HJR) 2 slated to appear on the November 7 ballot. Per the Texas Tribune, the cuts will take effect this year if they succeed at the polls.
KIAH Channel 39 reports that aside from the $100,000 homestead exemption for all homeowners, the package removes 20% off home value appraisals for the next three years for some residences and includes a promise from the state to devote $12 billion to slash school tax rates across Texas.