Texas renters could be in store for a rebate on their rent under this tax plan
Renters would get a rebate on a portion of their rent under a new property tax cut plan supported by several Texas House Democrats.
With billions at their disposal, members of the Texas House, Senate and Republican leadership have been at odds for months over the best way to deliver property tax relief. A bill has yet to be sent to Gov. Greg Abbott’s desk, as lawmakers work during a second special session — this one solely focused on property tax cuts.
A handful of Democrats on Thursday laid out their idea for how to reduce property taxes, including the measure specifically aimed at helping renters. Under House Bill 62, authored by Dallas Democrat John Bryant, households would be able to get a cash rebate on up to 10% of rent paid in the previous year, according to a news release. Bryant’s office confirmed apartment renters would also be included.
“We cannot ignore the fact that renters have been left out of this conversation from the very beginning, and that is why we have been tirelessly fighting to include them,” said Rep. Christina Morales, a Houston Democrat. “Renters deserve to receive their fair share of tax relief especially as rents have skyrocketed in the past few years.”
If passed by the legislature and approved by voters, renters who have paid rent to the same landlord for a year would be eligible for the rebate. A constitutional amendment proposes a $3.8 billion fund for relief for renters.
The plan also includes:
- A $1,000 increase to the amount of money schools get per student.
- A homestead exemption on school property taxes of $100,000 or 25% of a home’s appraised value, whichever is higher and up to $200,000.
- A 6-cent cut on school tax rates.
Democrats make up a minority in the Texas House and Senate, which means they’d need bipartisan support for the bill to pass. Bryant noted that individual measures could be offered as amendments to another tax cut bill.
“You can’t talk about property tax reductions without talking about every Texan, not only homeowners but also the 3.8 million householders who rent their homes,” Bryant said.
House Speaker Dade Phelan declined to comment on the plan through a spokesperson.
Abbott convened a second special session, June 27 calling on lawmakers to pass property tax cuts “solely” by funding schools so districts can reduce their tax rate. School tax bills generally make up the largest portion of homeowners’ property tax bill. He also tasked lawmakers with considering bills to put Texas on the path of eliminating districts’ maintenance and operation tax.
The next day, the Texas Senate unanimously passed its property tax relief bill, a version of which was also approved during the previous special session earlier in June.
The bill would increase the homestead exemption to $100,000, provides for school tax rate cuts and would expand the state’s franchise tax exemption. It also includes a bonus of at least
“I have been clear that I will not leave Austin without property tax relief targeted at homeowners through an increased homestead exemption to provide them as much relief as possible,” Patrick said in a June 28 statement. “Homeowners need property tax relief right now.”
The Senate has also approved supplemental payments for teachers of at least $2,000.
The House during the previous special session remained solely focused on cutting tax rates, passing a bill that would have dropped rates by 16 cents, not including further reductions expected from a 2019 bill. A version of the bill has passed out of committee this special session.
The House and Senate proposals are subject to voter approval.
A House committee studying sustainable property tax relief is scheduled to meet Friday.
Phelan told NPR’s The Texas Newsroom and Spectrum News that he and Patrick met on Wednesday and the discussion included tax reform and relief.
“I’m very hopeful something will happen this special session,” he told the Star-Telegram in a brief interview Wednesday.
This story was originally published July 6, 2023 at 5:02 PM.
