Gov. Gregg Abbott signed two Texas property tax law on Wednesday.
Two Texas property tax law that were approved by the Legislature earlier this summer were signed by Governor Greg Abbott on Wednesday in front of a group of Texas lawmakers.
Property tax relief from the two Texas property tax law totals $18 billion, which is the biggest tax reduction in state history.
Abbott stated that there is really only one reason why they even had the capacity to enact the Texas property tax law they did, and that is because of the hardworking men and women in every single corner of the entire state of Texas.
After failing to reach a consensus on the Texas property tax law during the regular session that concluded in May and a first special session in June, lawmakers enacted the Texas property tax law during a special session in July.
Over $12 billion from one Texas property tax law was used to lower the school property tax rate for all private residences and commercial premises. Every homeowner will also receive a $100,000 homestead exemption, up from the existing $40,000 exemption, and those over 65 will save even more.
In order for the Texas property tax law to become a permanent part of the Texas Constitution, the measure still needs voter approval in November.
A three-year trial 20% circuit breaker program is also included in the Texas property tax law and is only applicable to non-homesteaded properties with a value of $5 million or less.
According to the state’s website, circuit breaker programs cost much less than universal rate cuts or increases in exemptions since they take people’s financial situation into account when determining a property tax payment. Based on the statement, a property tax circuit breaker lowers property taxes if they are in excess of a specific percentage of an individual’s income.
A franchise tax is the main topic of the second Texas property tax law. Businesses in Texas must pay taxes to the state after reaching a specific level of annual revenue. The proposed Texas property tax law increases the overall revenue threshold which companies must reach in order to be subject to the tax. Sen. Paul Bettencourt, a Republican from Houston, estimated that around 40% of Texas enterprises, or 67,000 small businesses, will no longer be subject to the tax.
The Texas property tax law has received acclaim from NFIB Texas, a group that advocates for small businesses, claiming that it is said to assist business owners in expanding their operations, hiring more employees, raising pay, and making investments in their local communities.
Inflation, labor scarcity, and rising property taxes have all contributed to Main Street’s increased instability. According to Annie Spilman, state director for NFIB that this tax relief will result in significant savings for our small-business owners so they can continue to hire hardworking Texans, raise wages, and invest in their companies.