AUSTIN, TX — On Wednesday, the Texas Senate unanimously passed a package of property tax bills that will provide tax relief to homeowners and businesses. Senate Bill 3 by Senator Paul Bettencourt and joint-authored by Senator Hinojosa would increase the Homestead Exemption from $40,000 to $70,000. Senate Bill 4 by Senator Bettencourt and co-authored by Senator Hinojosa would lower the tax rate school districts can levy by about 7 cents. Senate Bill 5 by Senator Tan Parker and joint-authored by Senator Hinojosa would increase the Business Personal Property Tax exemption from $2,500 to $25,000. These three bills would take effect if Senate Joint Resolution (SJR) 3 passes this session and the voters approve these provisions in a constitutional amendment in the November 2023 General Election.
State Senator Juan “Chuy” Hinojosa, who joint-authored or co-authored all of these bills issued the following statement:
“Property tax reform continues to be a top priority for Lt. Governor Dan Patrick and all the members of the Texas Senate. The property tax relief bills I joint authored and we passed out of the Senate this week total $16.5 billion. Rising property taxes are something we all feel on an annual basis. For the past three sessions we have focused on reducing property taxes to help our families burdened with paying these taxes that sometimes feels like a second mortgage. With the passage of SB 3/SJR 3, SB 4, and SB 5, we are providing meaningful property tax relief to all Texans.
“SB 3 will increase the Homestead Exemption from $40,000 to $70,000 which will in turn lower the amount of our home’s value subject to school taxes. Homeowners ages 65 and older and the disabled would see their additional exemptions jump from $10,000 to $30,000, resulting in a total Homestead Exemption of $100,000.
“This will be the third time in less than ten years that we have increased the Homestead Exemption. In 2015, the exemption was set at $15,000 and the voters approved the increase to $25,000. In 2022, the voters approved increasing it to $40,000. It is estimated that this increase would save taxpayers an additional $341 on top of the average savings of $454 from the 2021 exemption. SB 4 will provide an additional $5.38 billion in school district tax rate compression and will reduce recapture for a number of school districts.
“I was also proud to joint author SB 5 to increase the Business Personal Property tax exemption from $2,500 to $25,000 to provide tax relief to our businesses. This bill also creates new inventory tax credits to further support our businesses and keep our Texas economy strong.
“I look forward to continue working with the members of the Legislature to get these bills to Governor Abbott’s desk and have Texans vote this November to provide this much needed property tax relief.