Leaders in the House and Senate worked through two special sessions after a monthslong stalemate that ended with an agreement on a deal worth about $18 billion.
According to a joint statement released by Patrick and Phelan, more than $12 billion will be spent on reducing the school property tax rate for homeowners and business properties.
Homeowners who homestead their home will also get a $100,000 homestead exemption. Non-homestead properties valued at less than $5 million will get a 20% circuit breaker on appraised values as part of a three-year program. There will also be savings on the franchise tax for small businesses.
"Reducing property taxes, providing relief to small business owners, and reforming our appraisal system will ensure economic growth and prosperity, and this agreement is a significant victory for all Texans," Phelan said in the statement.
The bills will originate in the Senate with the goal of passing them later this week.
"Speaker Phelan and I worked diligently together over the last week on the final bill," Patrick said in the statement. "It may have taken overtime, but the process has produced a great bill for homeowners and businesses."
Texas Gov. Greg Abbott addressed the agreement on his personal Twitter account and released the following statement:
"I promised during my campaign that the state would return to property taxpayers at least half of the largest budget surplus we have ever had. Today's agreement between the House and the Senate is a step toward delivering on that promise. I look forward to this legislation reaching my desk, so I can sign into law the largest property tax cut in Texas history."