Opinion

Patrick: Never a wrong time for tax relief Tax relief is right on time; state has enough money to meet its needs

Tax issues are on the fast-track agenda of the Texas Senate under the dome of the State Capitol in Austin. Lt. Gov. Dan Patrick urges quick action. ﻿ Tax issues are on the fast-track agenda of the Texas Senate under the dome of the State Capitol in Austin. Lt. Gov. Dan Patrick urges quick action. ﻿ Photo: Eric Gay, STF Photo: Eric Gay, STF Image 1 of / 1 Caption Close Patrick: Never a wrong time for tax relief 1 / 1 Back to Gallery

As your lieutenant governor, I was pleased to join the chairwoman of Senate Finance, Sen. Jane Nelson, R-Flower Mound, and a bipartisan group of 24 Texas senators to announce one of the largest tax relief packages in Texas' history. It is a bold plan that provides $4.6 billion in property tax relief for struggling homeowners as well as big and small businesses trying to make ends meet.

Shortly after that news conference a reporter asked me, "Tax relief - why is this the right time for tax relief?" My reply was simply, "There's never a wrong time for tax relief."

Texans have been demanding it, you deserve it and the Texas Senate can, and will, provide it during this current 84th legislative session. We're only six weeks on the job and already some have voiced concerns that providing tax relief now, before addressing funding needs, is premature. They are wrong. We have identified enough money in the state budget to take care of Texas' priority needs and still provide significant and lasting tax relief to the hard-working men and women who send their money to Austin.

In addition to the Senate budget, which addresses our core needs in Texas, we have enough revenue to also put money in the state's pension fund, take steps to make the retired teachers' health insurance fund sound, begin paying down debt and focus attention on building maintenance, which has admittedly been neglected too long. The final decision on those priorities will be left to the senators.

At the end of the day, the Texas economy stands strong if people and businesses have more money in their pocket so that job creation can flourish and people can put more money into our economy.

Nelson's Senate Bill 1 will increase the homestead exemption for the first time since 1997. The exemption would be set at 25 percent of the state's home median market value, and in future years it will adjust as values change. Today, that relief would provide nearly $2.4 billion for homeowners in Texas.

With voter approval for Senate Joint Resolution 1, also filed by Senator Nelson, a change to Texas' Constitution will also prohibit any future legislature from establishing a tax on the sale of real estate. This needs to be done to keep future Texans from being priced out of home ownership.

A third Nelson bill will provide about $1.7 billion in franchise tax relief for Texas businesses by reducing the franchise tax rate by 15 percent and making it permanent.

Senate Bill 8 by Sen. Charles Schwertner, R-Georgetown, raises the franchise tax exemption from the current $1 million exemption to $4 million. This will completely eliminate the business franchise tax for more than half of all Texas businesses that are currently subject to the tax. In other words, more than 61,000 Texas businesses paying the franchise tax today will see their tax liability vanish.

These are the types of bold tax relief initiatives Texans have been crying out for and are overdue. However, we have more to do this session regarding tax relief. We must address the issue of property tax tied to rapidly increasing values.

During Gov. Greg Abbott's State of the State address, he said he would reject any budget that did not have lasting tax relief for homeowners and businesses. As lieutenant governor, I won't allow a budget to reach his desk without these vital components. The Texas Senate plan provides broad tax relief while also setting aside money to address other pressing needs of the state.

Now is the time for boldness and the Texas Senate is up to the task.

Patrick, a Republican, is lieutenant governor of Texas.