Relief for Renters, Homeowners and Increase in School Funding Proposed in New Bill
In the bustling heart of Dallas’ West End, Daniel Pierre has made a home out of his rented apartment for more than a year.
“Downtown living has its advantages. The location is convenient,” Pierre voiced his fondness for city life.
Like countless others, however, Pierre is feeling the pinch as his rent soars. “When nearly half your paycheck is devoured by rent, life becomes a strenuous uphill climb.”
In response to such struggles, State Representative John Bryant (D-Dallas) has put forth a new bill that could grant renters like Pierre a much-needed breather. The proposed legislation offers a cash rebate of up to 10% based on the tenant’s rent payments over the preceding 12 months.
Under this bill, landlords would be responsible for submitting a certificate to the state affirming that the rent has been paid, after which the state would issue the corresponding rebate to the renter.
At a press conference held at the Capitol on Thursday morning, Bryant shed light on how renters have been overlooked in various property tax cut proposals. He pointed out that the approximately 3.8 million Texan household renters contribute to the state’s surplus through sales taxes, just as homeowners do.
Other House Democrats, including Ana-Maria Ramos (D-Dallas), rallied behind Bryant. “This is a matter of stability for Texas families, a focus that seems to be missing from other proposals,” she noted.
The proposed legislation also holds the promise of relief for homeowners by increasing the homestead exemption to $100,000 or 25% of the home’s appraised value, whichever amount is greater, subject to a cap of $200,000.
Highlighting the benefits of this proposition, Bryant stated, “A property tax reduction bill that actually translates into noticeable savings for homeowners would be an optimal outcome for both them and us.”
Simultaneously, the bill aims to bolster education spending by augmenting the basic allotment for public schools from $6,160 to $7,160, a boost of $1,000. This increase would also pave the way for a $4,300 raise for teachers. Both the school allotment and teacher salaries would be revised to account for inflation.
Bryant estimated that his comprehensive bill would carry a price tag of $20.9 billion.
Last week, a House committee gave the green light to a bill that seeks to grant property owners relief via a process known as compression—lowering property tax rates for schools and leveraging additional state revenues, including sales taxes, to fund schools.
The Senate unanimously passed a bill last week that also employs compression and expands the homestead exemption to $100,000 for most homeowners and $110,000 for homeowners aged 65 and over. This Senate measure proposes bonuses for teachers—$6,000 for teachers in smaller school districts with fewer than 20,000 students, and $2,000 for teachers in larger districts with more than 20,000 students—but only for the next two years.
Zeph Capo, president of the Texas American Federation of Teachers, issued a statement saying, “There should be no conflict between providing property tax relief for homeowners and renters and adequately funding community schools. This state has sufficient funds to achieve both.”
Pierre expressed his agreement, saying that the proposed rebate would mean an extra $2,400 in his pocket. “Yeah, sounds fantastic. I might save or invest some of that money, or even send some back home.”
However, the fate of the bill remains uncertain, given the Democrats’ minority status in both the House and Senate.
On Friday, a House committee is set to listen to testimonies on property appraisal increases. CBS News Texas is still awaiting news of any potential agreement between Lieutenant Governor Dan Patrick and House Speaker Dade Phelan regarding tax relief, following their meeting on Wednesday.
