Texas House passes $12 billion property tax relief package, setting up fight over appraisal cap with Senate

A $12 billion proposal aimed at giving property tax relief to Texas homeowners and businesses cleared a major hurdle Thursday in the Texas House, setting up a showdown with the Senate over their warring tax-cut packages.

House Bill 2 — backed by House Speaker Dade Phelan and carried by state Rep. Morgan Meyer, both Republicans — passed the full House by a 140-9 vote. It still must come back before the chamber for a final vote.

The bill proposes pumping $12 billion into Texas school districts so that they, in turn,...