AUSTIN, TX - Today, State Representative Dwayne Bohac (R-Houston) filed a comprehensive tax relief package aimed at cutting the tax burden on Texas homeowners' and businesses. Bohac's tax relief package includes HB 1943 which limits the amount of a homestead appraisal, HB 1946 which will limit the frequency of homestead reappraisals and HB 1945 and HB 1944 which will set the franchise tax exemptions at $2.5 million and $5 million, respectively.
“Texas continues to attract new people, new businesses and new jobs from around the country thanks in large part to our commitment to keeping taxes low,” said Bohac. “To help meet the demands of our growing economy and population, and to make sure our economy continues to thrive, I am committed to maintaining a low tax burden on homeowners' and protecting our pro-business climate.”
HB 1943 seeks to lower the current ten percent limit on annual property appraisal value increases to five percent for all residence homesteads. Under the current system, a homeowner's property tax bill could double every seven years.
HB 1946 will limit the increase of property tax appraisals by requiring biennial reappraisals of homestead property. This legislation will slow the appraised value growth for homeowners' in an effort to help stop Texans from being taxed out of their homes.
"Both HB 1943 and HB 1946 seek to rein in property taxes. In 2003, we lowered school property taxes by almost one third. However, homeowners quickly saw the reduction eroded by 'appraisal creep,'" Bohac said. "We owe it to Texas taxpayers to 'finish the job' we started in 2006 by lowering the homestead appraisal cap from its current level of 10% to 5%, or by reappraising property at most every two years, which results in a de facto 5% cap."
HB 1945 and HB 1944 will raise the franchise tax exemption on businesses that make less than $2.5 million and $5 million, respectively. The franchise tax exemption is currently $1 million, but that will expire and fall to $600,000 in September. Small businesses are responsible for a majority of the jobs in Texas and it is vital that these businesses have the opportunity to grow and continue to create jobs.
"According to the National Federation of Independent Business (NFIB), small businesses make up about 98.6% of the state's employers. It's imperative for our state's economic prosperity and job creation that we continue to maintain a low tax burden on these businesses so they can continue to grow and hire new employees," said Bohac.