HOUSTON – Homeowners are one step closer to property tax relief, with Governor Greg Abbott set to sign two bills after lawmakers approved more than $20 billion in property tax cuts this session.
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On Monday, the governor is scheduled to sign Senate Bill 4, 23, and House Bill 9. The first two were authored by Senator Paul Bettencourt, who also sponsored HB 9.
Here’s a closer look at what those bills mean:
- SB 4 & SJR 2 – Raises the ISD homestead exemption from $100,000 to $140,000, a 40% increase – in conjunction with SB 1, delivering an average annual savings of $484 for 5.7 million homeowners, with fully state-funded hold-harmless guaranteed for school districts
- SB 23 & SJR 85 – Raises the exemption for Texans over 65 and those with disabilities from $10,000 to $60,000, with SB 4’s base exemption, bringing the total exemption to $200,000, saving 2.08 million homeowners an average of $950.87 annually. Creating a super majority of seniors paying zero ISD homestead taxes
- HB 9 – Raises the Business Personal Property (BPP) exemption to $125,000, saving small business owners an average of $2,500
“SB 4 and SB 23 builds on the 2023 momentum of the largest property tax cut in U.S. history, a record-breaking $22.7 billion, with targeted exemptions to help millions of Texans, from first-time homebuyers to seniors on fixed incomes,“ Bettencourt said in a press statement. “$484 per year for 5.7 million homeowners and over $950 for seniors and the disabled. Add HB 9, small business owners too see an average savings of $2,500 annually! That’s real money.”
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“The Senators and our House colleagues from both sides understand when increased homestead exemption and more compression are combined, Texans receive maximum tax relief benefit.” Lt. Governor Dan Patrick explained during a press conference. “These bills combined with the historic $22.7 billion tax cut, Texas homeowners will see a total average reduction of $1,762.87.”
Once signed, the measures will appear on the 2025 Constitutional Amendment ballot during the upcoming election, giving voters the final say.