Houston Chronicle

Patrick eyes end of property taxes

Lieutenant governor also orders senators to study possible ban on some hemp products

- By Cayla Harris

Less than a year after Texas lawmakers agreed to $18 billion in property tax cuts, Lt. Gov. Dan Patrick has directed senators to study how much it would cost to eliminate them entirely.

Patrick, who leads the Senate, has ordered legislator­s to study a host of policies ahead of the upcoming legislativ­e session, including whether delta-8 and delta-9 hemp products should be banned in Texas and how the state should regulate artificial intelligen­ce. But the property tax issue, which dominated much of last year’s regular legislativ­e session and two special sessions, may be the highest-profile item on the agenda.

In a news release, Patrick said “continued property tax relief” would be a top conservati­ve priority when the Legislatur­e reconvenes in Austin next January. The Republican tasked senators with identifyin­g the best policy combinatio­ns to continue cutting tax bills, and he asked them to determine how much it would cost the state to eliminate school maintenanc­e and operation property taxes, all school property taxes and all property taxes.

While compiling that report, Patrick asked senators to review how the state would raise money to cover the losses and whether that would hurt Texas’ ability to respond to natural disasters and other emergencie­s.

“For example, determine the effect on other state programs if general revenue were used to fully replace school property taxes, particular­ly during economic downturns,” the lieutenant governor wrote.

Gov. Greg Abbott last year asked the GOP-led Legislatur­e to pass a massive property tax cut

through “compressio­n,” which cuts school property taxes by replacing that revenue with state money, with the eventual goal of scrapping property taxes completely. That’s been a major priority for some Texas Republican­s over the years, and it’s been championed by the Texas Public Policy Foundation, an influentia­l right-leaning think tank in Austin.

Still, Patrick’s request to study the subject doesn’t necessaril­y mean it’s in the stars for the Legislatur­e. Last year, the lieutenant governor — who has spent much of his political career focused on property tax reductions — called the prospect of eliminatin­g property taxes a “fantasy.”

“If we eliminated property taxes in the next two years, we would spend every dollar in our budget,” Patrick said at a news conference in June. “There would be no funding for public education, no funding for health care, no funding for law enforcemen­t. If you have no money from property taxes, you have no money left to do anything.”

Patrick was a major advocate for increasing the homestead exemption from $40,000 to $100,000, allowing Texas’ roughly 5.7 million homeowners to shave that amount off the value of their primary residence. That ended up in last year’s final deal, alongside about $12 billion in compressio­n.

Patrick also called on state senators to look at banning delta-8 and delta-9 hemp products, which provide a high similar to marijuana.

He has long opposed legalizing marijuana and has repeatedly blocked bills over the years that would lower the penalty for possessing small amounts of the drug.

Recreation­al marijuana use is illegal in Texas. People can access products with low THC levels for certain medical conditions, but the state’s medical marijuana program is more restrictiv­e than those in most other states, according to the National Conference of State Legislatur­es.

Delta-8, typically found in the form of edibles or vape cartridges, has exploded in popularity since 2019 after a new federal law reclassifi­ed the plant from an illegal drug to an agricultur­al commodity. Texas subsequent­ly legalized hemp production.

Hemp products in the state can have only up to a 0.3% concentrat­ion of delta-9 THC, which is synthetica­lly made and induces the high associated with marijuana. There is no limit on delta-8 THC, which can cause a similar feeling, especially at high dosages.

The Texas Department of State Health Services is engaged in an ongoing legal battle over the legality of delta-8, but in the meantime, the courts have allowed it to remain on shelves.

Delta-8 products grossed over $2 billion in sales in 2023, according to a report by the Chicagobas­ed Brightfiel­d Group, a market research firm that studies the cannabis industry.

Past proposals to ban delta-8 products have gotten pushback from veterans groups that say the products help veterans deal with ailments including chronic pain and post-traumatic stress disorder. Proponents of the ban say the Legislatur­e never intended to legalize products that make people high.

In 2019, a Patrick spokespers­on told the Texas Tribune that the lieutenant governor is “strongly opposed to weakening any laws against marijuana (and) remains wary of the various medicinal use proposals that could become a vehicle for expanding access to this drug.”

Patrick’s request to legislator­s called for “recommenda­tions to further regulate the sale” of delta-8 and delta-9 products and urged the lawmakers to “suggest legislatio­n to stop retailers who market these products to children.”

In 2021, state Sen. Charles Perry, R-Lubbock, added language to a bill that would include a ban on delta-8. That conflicted with a House version of the bill, and lawmakers ultimately failed to come up with a compromise.

Patrick also asked senators to investigat­e incentives for thermal power generation, the impact of bitcoin mining on the power grid, housing affordabil­ity and the role of “charitable bail organizati­ons” that provide bail for defendants.

 ?? Kirk Sides/Staff file photo ?? Lt. Gov. Dan Patrick says “continued property tax relief ” would be a top conservati­ve priority when the Legislatur­e reconvenes.
Kirk Sides/Staff file photo Lt. Gov. Dan Patrick says “continued property tax relief ” would be a top conservati­ve priority when the Legislatur­e reconvenes.
 ?? Raquel Natalicchi­o/Staff file photo ?? Lt. Gov. Dan Patrick wants state senators to look at banning delta-8 and delta-9 hemp products.
Raquel Natalicchi­o/Staff file photo Lt. Gov. Dan Patrick wants state senators to look at banning delta-8 and delta-9 hemp products.

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