More Property Tax Relief Coming For Texans

Miami Herald

4 days ago

Texas lawmakers have approved a substantial package of property tax cuts for homeowners and businesses, sending the measures to Governor Greg Abbott and placing the final decision in the hands of voters this November. The bills increase homestead exemptions and expand business tax relief.
Newsweek contacted Abbott for comment on Friday outside of regular office hours.
The move reflects mounting political and economic pressure to address rising property taxes, which fund Texas schools and local governments but have strained homeowners as property values have surged.
The expanded relief plan comes amid a broader national debate, as Republican-led states consider sweeping reductions or even elimination of property taxes, raising critical questions about funding for public services and state budgets.
The property tax cuts were approved by the Texas Senate on Thursday having already been approved by the House. Senate Bill 4 proposes raising the homestead exemption—the value of a primary residence shielded from local school taxes—from $100,000 to $140,000 for most homeowners. Separately under Senate Bill 23 seniors and individuals with disabilities would see this exemption rise to $200,000, meaning homeowners with values at or below this threshold will pay no school property taxes.
In a separate measure expanded exemptions for business-owned properties are also included, lifting the threshold from $2,500 to $125,000. This measure substantially reduces taxable value on business inventory and equipment.
However to pass into law the bills must be approved by Abbott and by Texas voters in November.
To fund both new and existing relief, Texas will spend an estimated $51 billion over the next two years, representing roughly one-quarter of the state's overall budget according to the Houston Chronicle. The state must reimburse school districts for lost local revenue, while cities and counties may seek to mitigate lost income by adjusting tax rates or budgets.
Some lawmakers, citing concerns about future economic downturns, have questioned the long-term sustainability of the growing financial commitment.
None of the proposals advancing to the ballot provide direct tax relief for renters—about 12 million people in Texas, many of whom are considered cost-burdened, meaning they spent at least 30 percent of their income on rent and utilities.
Texas is not alone in this push. States including Florida, Illinois, Kansas, and Pennsylvania are debating plans to eliminate property tax entirely, with varying approaches and uncertain futures.
The campaign responds to rising home values and the financial pressure they impose, particularly on older Americans. However, some experts caution that eliminating or sharply reducing property taxes could compromise essential funding for education, healthcare, and disaster response.
Lieutenant Governor Dan Patrick, at a press conference, said, "That's $1 of every $4 in the state budget," describing the Senate's commitment to Texas homeowners.
State Senator Paul Bettencourt, the bill's author, said, "There's no doubt in my mind that we can maintain our constitutional obligation for these homestead exemptions."
State Senator Nathan Johnson, a Dallas Democrat, said, "And a millionaire retiree is getting a $500 extra tax break, and you as a renter are getting nothing," as the sole vote against the homestead exemption for seniors, calling the policy "fiscally reckless."
Abbott is expected to sign the new measures. Texas voters will decide on the expanded exemptions at the polls in November. If approved, new exemptions will take effect for the next tax year.
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