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What is Property Tax Relief Act? Phelan Says Texas House Will Pass HB2 to Provide Aid to Property Owners in the State

Representative Dade Phelan says Texas House will pass Property Tax Relief Act. (Photo:AP Photo/Eric Gay)

Representative Dade Phelan explained in an op-ed that HB 2 will become Property Tax Relief Act that will give relief to property owners and contribute to the largest tax cut in the state ever.

Builders working on new homes in Texas. (Photo: Chron)

The Texas House will vote on the Property Tax Relief Act

The Property Tax Relief Act, also known as HB 2, is set to be passed by the Texas House as announced by Speaker Dade Phelan. Phelan explained in an op-ed published by the Houston Chronicle the act would provide much-needed relief to property owners in Texas and contribute to the largest tax cut in the state’s history.

The bill was filed by Representative Morgan Meyer and has five authors as well as 80 cosponsors. Both HB 2 and HJR 1 sought a constitutional amendment that would allow the legislature to impose limits on real estate assessment values.

Due to the state’s surplus revenue, Phelan believes that the bill, along with the proposed budget for the next biennium, could provide over $17 billion in property tax relief. The act has already been passed by the House Ways & Means Committee and will soon be scheduled for voting on the floor.

READ ALSO: Texas Republican Lawmakers Propose To Use More Than $15 Billion Propose For Property Tax Relief

Property Tax Relief Act Explained

Phelan assures Texans that HB 2 is a crucial step towards relieving the tax burden on property owners in the state, as per The Center Square. HB 2 aims to amend both the state’s education and tax codes and would also enable the legislature to limit the maximum appraised value of a real estate property for ad valorem tax purposes.

The bill aims to cap property appraisal rates at 5% annually, giving homeowners, renters, business owners, and others greater stability and predictability. The proposal seeks to address out-of-control property tax appraisals that are among the top issues constituents want fixing. When paired with the House’s proposed budget, the plan would also decrease school district property taxes by 28%, drop the state tax rate by more than 25%, and reform the state’s “Robin Hood” program.

RELATED ARTICLE: Before The Legislative Session- Greg Abbott & Dan Patrick Disagree On Property Taxes And Power System

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