AUSTIN — Legislation coauthored by State Representative Brooks Landgraf (R-Odessa) to provide $17 billion of property tax relief for Texans passed out of the Texas House of Representatives Friday. If passed by the Texas Senate, House Bill 2, the “Property Tax Relief Act,” would provide the largest property tax cut in Texas history.
“Providing meaningful, lasting property tax relief is a top priority,” Landgraf said. “And unlike many other past proposals, this one benefits every single property taxpayer in the state. Every Texan stands to benefit from HB 2.”
Landgraf teamed up with fellow State Representative Morgan Meyer (R-Dallas) on HB 2 to provide a school district tax rate compression that will result in a 28% reduction in in school property taxes. HB 2 also reduces recapture by more than $4.5 billion by increasing the state’s share of public education funding to over 50% for the first time in more than a decade. Finally, HB 2 places a 5% annual cap on appraisal increases for all types of property for the benefit of every Texas business, landowner, homeowner, and renter. For the average Texas homeowner, this would result in an average savings of more than $1,200 over the next two years.
“Most of the school districts I represent send millions of dollars back to the state each year in the form of recapture payments,” Landgraf continued. “HB 2 will help reduce the amount these districts have to send back to the state over the next two years, keeping more of our locally generated tax revenue here where it can directly benefit West Texas students. There are still several legislative hurdles left, but I’m hopeful we can ultimately get the Property Tax Relief Act over the finish-line to provide much needed relief for Texas families, businesses, students, and teachers.”
HB 2 passed out of the Texas House by a vote of 139 - 5. It will now advance to the Texas Senate for consideration. Provided it receives approval by the full Senate, HB 2 will be sent to Governor Abbott’s desk to be signed into law.