property taxes

Flickr/GotCredit (CC BY 2.0)

From Texas Standard.

A new proposal from Republican lawmakers would cut some tax rates and overhaul portions of the U.S. tax code. House Republicans rolled out the Tax Cuts and Jobs Act in Washington on Thursday.

Among the most controversial aspects of the GOP tax plan is that it lowers the mortgage interest deduction for homeowners. Current homeowners wouldn’t be affected, but new borrowers would only be able to deduct the first $500,000 – that’s down from the current limit, which is $1 million.

John Diamond, director of Rice University’s Center for Public Finance says that the mortgage deduction change could lower Texas home values by 1-2 percent.

Austin City Hall
Callie Hernandez for KUT News

Austin homeowners will pay more in property taxes and fees to the city next year under a $3.9 billion budget approved by City Council on Wednesday.

Pavel Mezihorak for KUT

The special session of the Texas Legislature began with an announcement by Gov. Greg Abbott in June, pushing — among other priorities — property tax reform. But that call to action fell short of producing a bill in the 30-day session. And no change in property tax law might be OK, because Texans may not be as overburdened by property taxes as they believe.

Marjorie Kamys Cotera/Texas Tribune

A bill that would change the way cities and counties collect property taxes is moving forward in the Texas House. On Saturday, lawmakers approved Senate Bill 1 on second reading. The measure would lower the rollback rate, or the annual percent increase in property taxes, from 8 percent to 6 percent. Any increases above that would have to go to the public for a vote.

The bill’s sponsor, Representative Dennis Bonnen, R-Angleton, repeatedly noted that SB 1 does not aim to save taxpayers any money, but it would allow them to weigh in on some increases.

Callie Hernandez for KUT News

Austin City Council voted Wednesday to raise the maximum rate at which it can tax homeowners, as it considers a "tax swap" plan that would divert that extra money to the Austin Independent School District.

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