Democrats wage last fight for education, renters as lawmakers are set to approve property tax cuts
AUSTIN (Nexstar) -- As the Texas Legislature nears the end of a months-long effort to pass a sweeping package of tax cuts, Democrats in the Texas House are waging their last fight to include their own priorities.
The property tax package on the table, formed after negotiations between top Republicans like Lieutenant Governor Dan Patrick and House Speaker Dade Phelan, includes four main ways to cut taxes:
- Reducing school district property tax rates by subsidizing public education with an additional $12 billion
- Raising the homestead exemption from $40,000 to $100,000
- Limiting appraisal value increases to 20% per year for non-homesteaded properties under $5 million, as part of a 3-year pilot program
- Exempting businesses with annual revenue of less than $2.47 million from the franchise tax, up from a $1.23 million exemption threshold
Those policies prioritize homeowners and business owners, and most Democrats agree with them. They are still pushing to go further for other groups of Texas taxpayers.
"House Democrats have long supported and authored provisions to increase the homestead exemption, if not more, and provide relief to working families," House Democratic Caucus Chairman Trey Martinez-Fischer, D-San Antonio, said. "Though we are heartened to see that proposal move forward, we harbor concerns regarding the current state of this deal... with billions of dollars to spend, it is inexplicable as it is cruel to remove compensation for teachers."
Democrats met in private for about 20 minutes before legislation started moving through the floor debate process. They are expected to try and force amendments to the legislation to include their own priorities, including renter relief and teacher pay bumps.
The increased franchise tax exemptions passed overwhelmingly. The larger property tax package, including school district tax rate cuts and a higher homestead exemption, was quickly delayed with procedural moves by Democrats.
Republicans are trying to rush through this massive corporate wealth transfer WITHOUT debate. Republicans have been in control of all branches for 25 years and have focused on drag shows and book bans," State Rep. Ana-Maria Ramos, D-Richardson, said in a tweet. "For the past 7 months there has been NO FOCUS on working families. Democrats will continue to fight for teachers, renters, and working families, but make no mistake, Republicans are the ones currently in CONTROL."
State Rep. John Bryant, D-Dallas, proposed an amended bill to include direct payments to renters and a $1,000-per-student increase to public school funding.
State Rep. Briscoe Cain, R-Deer Park, immediately challenged that amendment on procedural grounds.
Because these proposals require a constitutional amendment, they require two-thirds of the House to vote in favor. It is unlikely the Democrats have enough votes to derail the legislation.
This coverage is ongoing and will be updated as news breaks throughout the afternoon.