AUSTIN, Texas — Austin consistently ranks as one of the most expensive cities to live in the country, especially for first-time buyers. Austin homeowner Sean McElwrath has seen that firsthand.
"In the Austin real estate market especially, we've seen the value of homes increase at a rate that can make things uncomfortable from a property tax standpoint for people that have been Austin residents for years, if not generations," McElwrath said. "New homeowners, this is just kind of the new reality that we're faced with."
He said it would be fantastic to see any kind of cut on his property taxes, but the Texas Senate and House of Representatives are at odds over how to give Texans property tax relief.
On Tuesday, the Senate passed what Lt. Gov Dan Patrick called "the largest property tax cut in the history of the world." Senate Bill 26, by Houston Republican State Sen. Paul Bettencourt, offers $18 billion in property tax relief, increases the homestead exemption to $100,000 and reduces the school tax rate by 10 cents.
It is estimated to save the average homeowner more than $1,200 in the first year, and homeowners ages 65 and older or disabled could save more than $1,400.
The House plan solely reduces the school tax rate by about 16 cents.
With less than a week left in the special legislative session, the chances of the Texas House and Senate reaching a deal on property tax relief looks grim.
"I don't really have a preference. I think both of them would help," Burnet homeowner Nancy Simpson said.
Simpson relocated from Williamson County to Burnet because it was getting too expensive. At this point, she wants action taken.
"I would like to just see them do what they said they were going to do and give us property tax relief," Simpson said. "We just need to get something done as we were promised to get done."
Relief is what homeowners like Simpson are asking for as time runs out to give Texans a break.
The clock is ticking because voters would have to approve an increase to the homestead exemption, and the deadline to put an item on the ballot is August. Meanwhile, the special session ends on Tuesday.