Taxes

Texas leaders strike property tax cut deal

It ends a months-long fight between the two legislative chambers over competing plans.
Texas House Speaker Dade Phelan (R), during session at the state capitol in Austin on Wednesday, Jan. 18, 2023. (AP Photo/Eric Gay)

Texas leaders struck a deal to cut property taxes by $18 billion, ending a months-long fight over competing House and Senate plans.

The compromise announced Monday by House Speaker Dade Phelan (R) and Lt. Gov. Dan Patrick (R) would lower school property tax rates, raise the homestead exemption from $40,000 to $100,000, temporarily cut the appraised value of non-homesteaded properties valued up to $5 million, and lower taxes on small businesses. 

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