AUSTIN, Texas — Texans are one step closer to seeing larger property tax breaks.
On Thursday, the Texas Senate passed Senate Bill 4 (SB 4) unanimously with a 30-0 vote. The bill would increase the Homestead Exemption from $100,000 to $140,000, and up to $150,000 for seniors and disabled people, which the bill’s sponsor State Sen. Paul Bettencourt (R-Houston) said could save the average homeowner an estimated $363 each year.
The Senate also approved Senate Joint Resolution 2, which puts the proposed increase on the ballot for voter approval. Last session, voters overwhelmingly approved increasing the homestead exemption to $100,000, with 83% voting in support.
“The real problem is homeownership is now even more expensive than renting,” Bettencourt said in an interview with KVUE on Thursday. “We have a bipartisan, unanimous [support] to do something about it in the Texas Senate, which is get those homestead exemptions into homeowners and they can stay in their homes.”
Under SB 4, the state would allocate more money toward funding public schools, meaning homeowners would pay less. The proposal costs about $2.7 billion. With the combined tax rate compression and increased homestead exemption, Lt. Gov. Dan Patrick estimated it would cost the state about $32.2 billion.
Lowering property taxes has been a priority for many lawmakers, including Patrick and Gov. Greg Abbott. During Abbott’s State of the State address, he declared property tax relief as an emergency item.
“We know that many Texans face an affordability crisis,” Abbott said during his address. “Last session, we slashed your property taxes, but for many Texans, those cuts were wiped out by local taxing authorities that hiked your property taxes even more. That must end this session.”
Both bills will now head to the Texas House for approval.