Texas House passes property tax bill, adjourns 1 day into special session

Abbott directed lawmakers to pass legislation aimed at cutting property taxes and increasing criminal penalties for human smuggling. On the evening of May 30, over the course of 15 minutes, the House did just that.

After passing three bills, the House adjourned “sine die,” which means it cannot meet again for the rest of the special session.

House lawmakers did not consider any Senate proposals, leaving the Senate with two options: pass the House’s versions of the bills or end the session without any bills becoming law.

The two chambers filed dueling plans to cut property taxes during the 140-day regular session, but leaders were not able to reach a compromise. Border security proposals also hit some snags, including pushback from Democrats.

But the new House bills, which received unanimous approval in the chamber, delivered exactly what the governor ordered.

“When Governor Abbott declared a special session yesterday evening, we had every intention of gaveling in this morning, fulfilling the governor’s call and gaveling out,” House Speaker Dade Phelan said in a statement.

House Bill 1, by Rep. Morgan Meyer, R-University Park, would cut property tax rates for school districts by $0.162 per $100 valuation. This would reduce how much Texas homeowners pay on their property tax bills, lawmakers said.

Since public schools receive a large amount of funding from property tax revenue, the state would funnel $12.3 billion back into schools to prevent a loss of funding.

Meyer also filed House Joint Resolution 1, which would allow Texans to vote on the tax cuts.

“This resolution ensures that the Legislature can provide the historic property tax relief in HB 1 and future property tax relief without being subject to the constitutional spending limit,” Meyer said.

HJR 1 would be placed on all ballots as a constitutional amendment in November.

HB 2, by Rep. Ryan Guillen, R-Rio Grande City, would increase the minimum prison sentence for smuggling people to 10 years. A similar bill was filed in the Senate.

However, the Senate took a different approach to property tax cuts. The Senate’s legislation, SB 1, would cut school tax rates by $0.10 and increase the homestead exemption from $40,000 to $100,000. A homestead exemption is the portion of a home’s value that cannot be taxed.

On May 30, Phelan told House members the Senate’s proposal “will not be referred to a House committee,” arguing it was not in line with the governor’s request.

The governor agreed.

“​​The Texas House is the only chamber that passed a property tax cut bill that is germane to the special session that I called to provide Texans with property tax relief,” Abbott said in a statement after the House adjourned. “I look forward to signing it when it reaches my desk.”

The Senate is not scheduled to meet again until June 2. It is unlikely that HB 1 will pass out of the upper chamber.

In a statement, Lt. Gov. Dan Patrick, who oversees the Senate, criticized Abbott and indicated he would not support the House’s proposal.

“While the Governor has the sole authority to call the Legislature into Session, the Legislature writes the bills,” Patrick said. “Something Governor Abbott and Speaker Phelan should remember—for any bill to pass, it must go through both the House AND the Senate.”