The $18 billion property tax-cut package is aimed squarely at lowering school district property taxes, which make up the lion’s share of a Texas landowner’s property tax bill.

Voters approved a massive property tax cut and several other measures, but refused to raise the mandatory retirement age for judges.

Proposition 4 could usher in a bevy of property tax changes. That includes using $12.7 billion from a record state budget surplus to lower school district taxes.

For decades, the Texas comptroller’s office has double-checked property valuations across the state, which help determine how much school districts can levy in property taxes. But when state and county appraisers disagree, districts can end up with big holes in their budgets.

With several hundred bills awaiting action by the governor, Lt. Gov. Dan Patrick called the veto threat an affront to Texans and the legislative process.

Legislation passed this month would raise the state’s homestead exemption to $100,000, lower schools’ tax rates and put an appraisal cap on residential and commercial properties, among other measures. But voters must approve a constitutional amendment first.

House Democrats attempted to insert benefits for renters and more money for public education into the tax-cuts package in a series of floor amendments but were unsuccessful.

The deal would channel $12 billion to reduce the school property tax rate for homeowners and business properties, increase the homestead exemption, and create a pilot program to reduce taxes on certain residential and commercial properties. The legislation is expected to pass later this week.

Top Republicans promised property tax cuts, but have been locked in standoffs on how to achieve it. Gov. Greg Abbott has called another overtime legislative session in hopes of solidifying a plan.

Gov. Greg Abbott quickly called lawmakers back to the Capitol for round two, hoping to break an impasse that has outlasted the regular session and one overtime period.

San Antonio’s City Council successfully doubled the city’s homestead tax exemption to 20%, the maximum allowed by state law.

The Senate’s latest proposal is an apparent effort to appease Gov. Greg Abbott and the lower chamber. The state’s top Republicans have been at odds for months over how to use the state’s historic budget surplus to cut property taxes.