A set of property tax cut bills in Texas Legislature, Senate Bill 4 and Senate Bill 23, are now headed to Governor Greg Abbott’s desk for signature.
Both bills are sponsored by Houston Republican Senator Paul Bettencourt.
SB 4 would raise the homestead exemption from $100,000 to $140,000. SB 23 would give an additional exemption to those over 65 years of age or have disabilities.
A homestead exemption is a way to lower the taxable value on property.
For example, if a home is worth $350,000 and there is $140,000 exemption, the house will only be taxed $210,000.
Bettencourt praised the bills and their potential benefits for homeowners during a press conference last week.
“It’s a fantastic package. We’ve been working on this for years," said Bettencourt.
Nearly 6 million homeowners could see a savings of nearly $500 a year and about 2.7 million could see a $950 a year savings.
Property tax in Texas is largely used for public school funding.
Rice University political science professor Mark Jones said public school resources will not be affected by this property tax relief package.
“Any money they lose due to this property tax relief, the state will make up for it via direct transfers of funds to the individual ISDs," said Jones. “This legislation keeps every school district whole."
While some homeowners look forward to getting more relief on property tax, others say it wouldn’t impact their livelihood by much.
“If I get an extra thousand bucks or whatever, that just doesn’t quite honestly move the needle for me one way or the other," said Houston homeowner John Furnace.
Furnace said he has five children, and his wife just turned 65 years old, qualifying for an additional exemption. However, he still sees value in paying property taxes
“We have to support our government. We have to support our streets and infrastructure,” said Furnace. “As long as the tax money is being used judiciously, I have no problems paying my fair share."
If Governor Abbott signs these bills, Texas voters get a say in November.
If voters decide to pass the bill into law, the changes go into effect 2026.
