Property Tax Agreement Passes Both Senate and House
July 14, 2023 | Austin, TX
An update from the Montgomery County Republican Party Legislative Committee
Providing Governor Greg Abbott follows through on his promise to sign it, the Senate version of property tax relief has passed. The House voted nearly unanimously for the bill that combines tax rate compression and a rise in the homestead exemption from $40k to $100. The plan will cost the state $18 billion of its $33 billion surplus.
On July 12, Senator Paul Bettencourt presented SB 2, the agreement struck between Lieutenant Governor Dan Patrick and House Speaker Dade Phelan on property tax relief, to the Senate.
The text of the bill is provided in the link here. Details include:
Raising the homestead exemption from $40k to $100k. This increase in homestead exemption amount will provide a savings of $681 to a homeowner's school tax at the statewide independent school district (ISD) average tax rate of $1.136.
SB 2 also contains a provision to provide the full amount of the $40,000 homestead exemption increase to over 65/disabled exemption holders who did not receive the full benefit from SJR 3 and SB 1 that was approved by voters in May 2022.
Additionally, SB 2 contains language that if a legislature increases the homestead exemption, over 65/disabled exemption holders will automatically benefit from the increased exemption amount. This provision will eliminate the need to have a separate constitutional amendment every time the exemption amount is increased for over 65/disabled exemption holders.
Provide 10.7 cents of additional ISD tax rate reduction through the maximum compressed rate.
Create a pilot program circuit breaker 20 percent limitation on appraised value increases for non-homestead real property valued less than $5 million, indexed to inflation. The circuit breaker will sunset on December 31, 2026.
Creates three new elected positions for appraisal district boards of directors in counties with population of 75,000 or more. Appraisal review board membership will be determined by the appraisal district board of directors in counties of population 75,000 or more.
Prohibit local taxing units from reducing or eliminating an existing local option homestead exemption for four years following the increase to the homestead exemption.
The bill has been signed by both the House and Senate.
Brandon Creighton (SD 4)
(512) 463-0104 (Austin Office)
(281) 292-4128 (District Office)
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Paul Bettencourt (SD 7)
(512) 463-0107 (Austin Office)
(713) 464-0282 (District Office)
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Lois Kolkhorst (SD 18)
(512) 463-0118 (Austin Office)
(979) 251-7888 (District Office)
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Rep. Cecil Bell (HD 3)
(512) 463-0650 (Austin office)
(281) 259-3700 (District office)
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Rep. Steve Toth (HD 15)
(512) 463-0797 (Austin office)
(346) 220-0300 (District office)
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Rep. Will Metcalf (HD 16)
(512) 463-0726 (Austin office)
(936) 539-0068 (District office)
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Rep. Ernest Bailes (HD 18)
(512) 463-0570 (Austin office)
(936) 628-6687 (District office)
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