Texas Government Leaders Reach Agreement on Tax Relief Package
A week and a half before the end of the 84th Legislature, Texas Governor Greg Abbott, Lt. Governor Dan Patrick and Speaker of the House Joe Straus announced they reached an agreement for a tax relief package. Texas property and business owners will benefit from $3.8 billion in tax relief.
According to the Governor's Office, the three leaders agreed to the following:
- 25 percent permanent reduction in the business Margins Tax;
- $10,000 increase in the Homestead Exemption, beginning in 2015, subject to passage of a Constitutional Amendment adopted in the November election; and
- SB 1760, requiring a 60 percent vote of the governing body of any taxing unit wishing to adopt an increase in property taxes that exceeds the effective tax rate.
“Texas leaders have come together to advance conservative principles that will improve the lives of Texans and continue to make Texas the model for doing business,” said Governor Abbott. “Every dollar businesses and homeowners pay in taxes is a dollar that could be invested in new jobs, higher wages and stimulating the Texas economy. I commend the Speaker and Lieutenant Governor for working with us to achieve meaningful tax relief for Texans.”
“It is a major achievement to come to an agreement on such a broad spectrum of significant legislation,” said Lieutenant Governor Dan Patrick. “I believe when this session concludes it will be one of the most, if not the most, productive legislative sessions in the history of the Texas Senate and the entire legislature. I thank the Governor and the Speaker for their hard work in finalizing this agreement.”
"This agreement will allow the House to vote on tax relief that encourages economic growth," said Speaker Straus. "I want to thank the Members of the House who have worked to put this agreement in place, as well as Governor Abbott and Lieutenant Governor Patrick. I look forward to working with my House colleagues to approve this plan as part of a successful end to our legislative session."
Last month, Speaker Straus had been championing a first-time ever cut in the sales tax for Texans. However, Governor Abbott wanted business tax cuts and Lt. Governor Patrick wanted a cut in the Homestead Exemption, as he told KFYO's Chad Hasty earlier this month.
With Texas leadership coming to an agreement on terms of tax relief, the House and Senate is expected to pass their respective budget bills, and SB 1760 before the session ends on June 1.