Texas homeowners and businesses have been handling operations in the Lone Star state for the longest time. The Texas House had set up the showdown with the Senate in regards to various tax-cut packages. House Bill 2, had been backed by the House Speaker Dade Phelan, while being carried by the state Representative Morgan Meyer, both of these individuals are Republicans, while passing the full House by a 140-9 vote, while it returns for the chamber for the final vote.
The Bill itself has been pumping about $12 billion into Texas school districts for lower property taxes via business owners and homeowners as well. The package itself can result in beyond $1,000 for the owner of a $350,000 home while there could be savings that come in over the course of two years.
The high property tax burden has always been an issue for Texas school districts for the needs of the students. House Bill 2 is instrumental for the House’s $17 billion proposed package, regarding how Legislature can handle it in the future.
There are worries that the caps getting sliced in half could raise the housing prices.
House Bill 2 uses a provision of a controversial nature that in itself draws critique from housing experts, tax-cut proponents and business groups, similar to Lieutenant Governor Dan Patrick, who himself is thinking dire consequences can thereby occur.
The strangest result may be that the state’s appraisal cap will tighten on the taxable value of a home for every year.
The House proposal is able to lower the cap from about 10% to 5% while expanding the benefit towards owners of business properties like restaurants.
There lies, however, the argument that lowering the cap is supposed to let property owners have peace-of-mind that the appraisal increasing is not going to get any more unorthodox than this. If the appraisal cap is tightened, it can reveal huge inequities along with property owners as housing costs are riven upwards. Such effects have been found before in California throughout the years after a vote in the 1970s have shown how much homes can be taxed after being capped. House Republican leaders however haven’t made much concern out of those concerns. There was a public clash in the House and Senate, as seniors with appraisals wouldn’t be helped if said appraisals had already become capped. Through the House’s proposal, many owners are likely to achieve tax breaks. The benefits of the state’s 10% cap go towards the wealthiest of homeowners and business runners.