On Thursday, Democratic lawmakers in the Texas House of Representatives revealed a $20.9 billion plan to reduce property taxes for Texans by means of tax compression, an increased homestead exemption, and annual rebates for renters.
The bill proposed by Representative John Bryant (D-Dallas), which is included in an omnibus package that addresses many of the property tax proposals that lawmakers discussed, combines ideas from the previous House and Senate plans, adds renters to the mix, and seeks to shore up teacher pay.
House Democrats stated during a press conference on Thursday that their package, which includes both House Bill 62 and a companion joint resolution, will provide long-term relief for homeowners and educators.
Certificate of Rent Paid
In addition to making sure that future allotment increases account for increasing teacher compensation, the proposed increase would also be tethered to and rise with inflation. According to the Democratic Party, this plan would provide teachers a permanent annual salary of $4,300, at a cost of $15 billion.
The Senate moved forward on a tax plan last week that would raise the homestead exemption to $100,000 and provide a two-year, $2,000 raise for teachers in urban districts and a four-year, $6,000 raise for teachers in rural districts.
Although the Senate was initially on board with a homestead exemption, they eventually decided against it in favor of lowering the limit on annual property assessment rises and squeezing tax rates, all of which are included in the new House proposal.
Homeowners would receive a homestead exemption of either $100,000 or the amount corresponding to 25% of the home’s value (up to a ceiling of $200,000) under the property tax package, whichever quantity results in the greater savings.
The plan announced on Thursday differs significantly from other property tax legislation in that renters, who account for 38% of Texans, would be eligible for tax relief.
A “certificate of rent paid” would be issued by landlords to tenants, who would then apply to the state comptroller’s office for the 10% rebate. The amount of money disbursed each year is depending on the number of people who apply and the amount of money available, currently $1.9 billion.
Read Also: Social Security Update: Millions to Receive Direct Payments of up to $4,555 in Eight Days
Source: AOL