Capitol Annex’s Press Room

[Press Release from State Rep. Veronica Gonzales (D-McAllen)]

AUSTIN– State Representative Veronica Gonzales D-McAllen joined her Democratic colleagues in unanimously voting for a constitutional amendment, (SJR 13) extending the tax cuts passed last year to include seniors and disabled persons. Though the amendment passed unanimously, it had been endangered last week when it was attached to a highly controversial and unprecedented amendment to bust the constitutional state spending limit. Had the issues remained attached, it is likely that the senior tax cut would have died in the Senate as a result.

In addition to passing the tax cuts, Democrats offered three amendments to the bill appropriating the funding for the property tax reductions promised last year (HB 2). The amendments would not change the allocation for property tax cuts, rather they would direct leftover money to three specific purposes should the actual cost of the cuts be less than the $14.2 billion set aside in the bill.

“I am proud to stand with all of my Democratic colleagues today.  At our urging, the House leadership abandoned its plans to hold seniors hostage to the budget debate,” said Rep. Gonzales regarding the senior tax cut. “When it comes to protecting our seniors and the disabled,  I am proud we did the right thing.”

Despite its support for the senior tax cut, the AARP came out strongly against the Republicans’ decision to link the heated debate about busting the spending limit to tax cuts for seniors and the disabled. Because linking the two issues together put the passage of the senior tax cuts in danger, the AARP said last week that the Republican leadership was holding seniors hostage and using them as “political human shields.”

Under current law, seniors (65 and older) and individuals with disabilities qualify to receive a freeze on the amount of school property tax that can be imposed on their homestead residence.  At the same time, other Texas homeowners’ property tax rates were lowered by legislation passed last year. Without the proportional tax cuts delivered today, many seniors would have received a smaller tax cut than their neighbors. Some seniors and disabled individuals would have received no property tax reduction at all.

Last year, the Legislature met in a special session and passed legislation to cut local school district property taxes for Texas homeowners. At that time Rep. Gonzales voted to provide a proportionate reduction in property taxes for those seniors and disabled Texans receiving the tax freeze, but it died in the Senate.

In another attempt to fix this problem, immediately following the 2006 general election, several representatives filed legislation to ensure that seniors and disabled Texans receive the same proportional property tax cuts as every other homeowner. Today, Rep. Gonzales, again voted to provide seniors and disabled Texans the relief they deserve and, pending the voters’ approval, the legislation will become law.

“The seniors in the Valley can finally rest assured that they will get the same tax cut as everybody else,” said Rep. Gonzales “The last thing seniors should have to worry about is their financial stability. They have worked hard and they have earned peace of mind. We helped provide that with this vote today.”

Democrats offered three amendments to the property tax cut appropriations bill (HB 2).  Should the price tag for the tax cuts come in under the $14.2 billion allocated for that purpose, the bill initially set aside all remaining funds for future cuts. House Democrats proposed using the extra money to improve public schools by funding a teacher pay raise and purchasing new textbooks. A third amendment offered by House Democrats proposed to use the excess to increase the homestead exemption to $45,000, which homeowners are allowed to deduct from the taxable value of their home. Middle class homeowners (the vast majority of Texas homeowners) would benefit most from that change.

“Once we have fulfilled our promise for property tax rate cuts, it is time to start talking about other important priorities for educating our children and expanding opportunity for the middle class once again,” said Rep. Gonzales. “It is entirely possible to provide for quality teachers and return money to hardworking middle class homeowners.”

Texas teachers are still paid $4,000 below the national average annually, despite a pay raise passed last year. The state comptroller estimates that more than 37,000 teachers leave the profession every year.