Texas Lawmakers Reach Deal to Cut Property Taxes, Franchise Tax

After months of gridlock, Texas leaders reached an $18 billion deal Monday to cut property taxes and reduce the franchise tax.

Lawmakers announced a compromise plan that reduces the school property tax rate for homeowners and business properties, creates a tax-credit pilot program for non-homesteaded properties, and provides relief on the franchise tax for businesses. Officials said the bills and a constitutional amendment to enact the tax cuts would pass in both chambers this week.

Gov. Greg Abbott (R) said he would sign the legislation to provide “the largest property tax cut in Texas history.”

The tax plan would ...