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Newsweek
21-06-2025
- Business
- Newsweek
Texas Homeowners Worry About 'Loopholes' in New Property Tax Cut Law
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Texas homeowners struggling under the growing burden of rising housing costs are supportive of the new package of property tax cuts signed into law by Governor Greg Abbott on Monday. However, some are worried that appraisers may find "loopholes" around them to keep bills high. "The governor is trying to help, but local counties will just find loopholes in the laws and pull the money from our pockets," Jeff, a Parker County Texas homeowner, told Newsweek, revealing a deep frustration with Texas' County Appraisal Districts (CAD) which seems to be shared by several other readers. What's Behind Texas Homeowners' Frustration? Property tax bills have surged over the past five years in Texas due to skyrocketing home values exacerbating locals' affordability struggles. Between 2019 and 2023 alone—years marked by the pandemic homebuying frenzy—property taxes in the Lone Star State jumped by 26 percent, according to Cotality. As of 2025, Texas homeowners pay the seventh-highest property taxes in the country, according to SmartAsset, at an effective rate of 1.63 percent, significantly higher than the national average of 0.90 percent. Photo-illustration by Newsweek/Getty/Canva On average, a Texas homeowner pays $3,872 a year in property taxes, which are levied by local governments and used to fund public services, including schools, roads, police, and firefighting. The rise in property taxes, which has occurred nationwide, has hit senior homeowners the hardest, as they often rely on a fixed income and are less well-equipped to shoulder a suddenly heavier financial burden. What Do the New Laws Promise Homeowners? The new package of property tax cuts, which includes two key bills raising the homestead exemption in the state, is Abbott's latest attempt to offer homeowners relief after signing into law what was the largest property tax cut in the state's history in 2023. One bill contained in the package, signed by the governor on Monday, SB 4, would raise the existing homestead exemption from $100,000 to $140,000 for all homeowners. Another, SB 23, would raise it to $200,000 for those with disabilities or those aged 65 and above. The two bills include constitutional amendments that would need to be approved by voters in November to be enshrined into Texas state law. Why Do Homeowners Remain Skeptical About Relief? Several readers wrote to Newsweek, expressing enthusiasm for the new property tax cuts, but also voicing concerns that they might not result in a significant reduction in their bills. "No homeowner over 70 should pay property taxes. And 65 to 70 only half. Our senior years are fraught with enough worries, medical, food, insurance etc without worrying about losing their home," one Austin-based homeowner said. "I've had to sell all of my investment holdings to afford property tax for my remaining years. But it seems that the CAD just raises our appraised values to counteract Abbott's help." Jeff said that his home has appreciated in market value by 73 percent since 2020, a number that he can hardly believe is accurate. "Local governments blame [price] growth, but in all reality, it's poor management by our local government," he said. "I personally have now protested my taxed appraised market value three times now, each time getting minimal relief. The fact that they are willing to adjust your market value tells you they are playing the numbers to bring in more money," he said. John, another Texas homeowner, said that, on average, his property evaluations have increased from $270,000 to $563,000 over the last eight years. "My annual property tax leapt from $4,300 annually, to just north of $7,000," he said. "This past year, as well as this year, upcoming, will be in the neighborhood of $6,200, largely due to the efforts of the past two legislative periods," he added. The news of the new property tax cuts signed by Abbott was "music to my ears," John said. "You've always heard that mantra, 'I don't want to rent my home after it's paid for from my school district,'" Texas Lieutenant Governor Dan Patrick said after the two bills passed the state legislature. "Well, seniors, to the average senior out there, you're never going to have to do that again." John said that Patrick's comment about paying rent to the school district "is no quip." "My breakdown, most recently, is at $15,00 city, $1,250 county, and $3,500 school district distribution," he said. "While it's true that 'it takes a village,' my kids are adults in the workforce themselves. While paying much higher property taxes to schools, I was still on the hook for community pencils, paper, notebooks, and Kleenex, for distribution to children by the teachers," he said. "Along with anything teachers did to create a more engaged environment in their classrooms, that was out of their pockets." While John appreciates how municipal governments spend the money he pays in property taxes, he feels that there is insufficient transparency regarding the way school districts allocate their funding. "Long story short, I will support this legislation to the extent of posting pro-bill signage in my yard, and on my vehicle, if I do think it will come to that," he said. "People are sick to death of the Central Appraisal Districts and their chokehold on property owners." Are you a Texas homeowner? I'd like to hear from you about your experience with property appraisals and rising property tax bills. Email me at
Newsweek
16-06-2025
- Business
- Newsweek
Greg Abbott To Sign Texas Property Tax Bill: What To Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Texas Governor Greg Abbott is expected to sign new legislation offering property tax relief to homeowners in the state struggling with rising bills, on Monday. If endorsed by voters in November, the measures pushed forward by the GOP-led Texas legislature would significantly lower the cost of homeownership for millions of Lone Star State residents, including seniors and disabled owners, at a cost of over $3 billion. It would also dramatically slash revenues for local governments funding crucial public services, which the state would have to make up for. Why Do Texas Lawmakers And Abbott Want To Cut Property Taxes? While the Lone Star State is known for its relatively low tax environment, homeowners actually pay some of the highest property taxes in the country. These are levied by local governments and used for funding schools, streets, roads, police and fire protection. The governing body of each of these local governments sets its own tax rate based on a property's appraised value. But property taxes all across the U.S. have surged in step with home values since the pandemic, when historically low mortgage rates sparked a homebuying frenzy which had its epicenter in some of the country's most affordable states, including Texas. Between 2019 and 2023 alone, median property taxes in the Lone Star State rose by 26 percent, according to data by Cotality, formerly CoreLogic. Gov. Greg Abbott speaks during a bill signing in the State Capitol on April 23, 2025, in Austin, Texas. Gov. Greg Abbott speaks during a bill signing in the State Capitol on April 23, 2025, in Austin, of 2025, Texas homeowners are paying the seventh-highest property taxes in the nation, according to SmartAsset, at an effective rate of 1.63 percent. That is a lot higher than the national average, which stands at 0.90 percent, with the typical Texas homeowner paying $3,872 annually in property taxes. Abbott has long been trying to lower the property tax burden on Texas homeowners, signing in 2023 what was then the largest property tax cut in the state's history at $18 billion. But that intervention barely helped the many homeowners struggling with rising bills, and the Republican governor called for lowering property taxes as a priority during this year's legislative session. What Is In The New Package Of Property Tax Cuts? The package of property tax cuts that Abbott is expected to sign on Monday at the Robson Ranch clubhouse in Denton includes two bills recently passed by the Texas House and Senate that would back two constitutional amendments. One bill, SB 4, would raise the existing homestead exemption from $100,000 to $140,000 for all homeowners, while the other, SB 23, would raise it to $200,000 for those with disabilities or those aged 65 and above. "You've always heard that mantra, 'I don't want to rent my home—after it's paid for — from my school district,' " Lt. Gov. Dan Patrick said after the two bills passed the Texas legislature. "Well, seniors, to the average senior out there, you're never going to have to do that again." SB includes a provision guaranteeing school districts would not lose funding due to the lower property taxes, trying to answer criticism that the cuts would harm public services. It would be up to the state to raise the difference—which is estimated at $3.5 billion. What Happens After Abbott Signs The Legislation? In order to implement the constitutional amendments approved by the legislation, voters would have to back the homestead exemption hikes in November. Texas Senator Paul Bettencourt, R-Houston, who introduced the legislation, will be attending the signing ceremony on Monday. He said that he hopes there will be a "record turnout by the public" to get these tax cuts "enshrined" in the Texas constitution. Newsweek contacted Abbott's office and Bettencourt's office for comment by email on Monday morning.
Yahoo
30-05-2025
- General
- Yahoo
No Texas cities on Department of Homeland Security sanctuary city list
AUSTIN (KXAN) — Thursday, the US Department of Homeland Security released a comprehensive list of jurisdictions it believes are defying federal immigration law. 'Designation of a sanctuary jurisdiction is based on the evaluation of numerous factors, including self-identification as a sanctuary jurisdiction, noncompliance with Federal law enforcement in enforcing immigration laws, restrictions on information sharing, and legal protections for illegal aliens,' a DHS spokesperson said. According to DHS, each of the cities or counties listed will get a notification from the federal government of its non-compliance. Austin City Council passes resolution countering stalled state immigration law 'DHS demands that these jurisdictions immediately review and revise their policies to align with Federal immigration laws and renew their obligation to protect American citizens, not dangerous illegal aliens,' the agency said. There are no Texas cities on the list, though DHS told KXAN the list 'is actively reviewed, will be regularly updated, and can be changed at any time.' The Trump administration has previously indicated cities not complying with federal immigration law may be passed over for funding opportunities. For example, the secretary of the Department of Transportation released a memo earlier this year indicating cities that require compliance with immigration enforcement will be prioritized for federal transportation funding opportunities. 'President Trump and Secretary Noem have been clear: sanctuary jurisdictions should immediately cease violation of Federal law and cooperate with law enforcement,' a DHS spokesperson said after KXAN reached out asking about penalties associated with making the list. Earlier this year, Attorney General Ken Paxton announced an investigation into the city of Dallas and the Dallas Police Department over possible sanctuary city policies, according to a release from the AG in March. 'The law is not optional. Local governments do not have the authority to disregard state and federal immigration laws,' said Attorney General Paxton at the time. Texas lawmakers effectively banned sanctuary cities in 2017 through Senate Bill 4. That now-law prohibits any local policy that would interfere with state or federal immigration enforcement. The city of Austin initially fought against it, passing 'freedom city' resolutions that identified legal loopholes in SB 4. For example, while state law allows officers to question someone on their immigration status, the city instructed police to inform people of their right not to answer that question, NBC News reported. Inside Austin's Agenda: City Council Member Mike Siegel Since then, state lawmakers have also passed a bill that allows local law enforcement to arrest people they believe are in the U.S. illegally. That one came in 2023 and has been tied up in federal court since. Just like the previous council, Austin addressed that one with a resolution as well. 'We really want our police officers focused on investigating violent crime. That's where their time and resources should be spent. Not carrying out this policy that we know leads to racial profiling, that will separate families and could potentially lead to deportations,' Austin City Council Member Vanessa Fuentes (she is now the mayor pro tem) said after that resolution passed. After Trump immigration order, ICE 'force multiplier' agreements with Texas police surge But between state and federal rules, the city of Austin — and other Texas cities — are largely restricted on what more they can do in broad brush strokes. That is, if the don't want to lose massive chunks of funding or face legal penalties. 'So that's where you can't, quote, unquote, be a sanctuary city. You know, we can't use our police officers to disrupt ICE enforcement, things of that nature. Or, you know, frankly, our chief of police could lose her law enforcement license. We could have funding taken away from our city,' Austin City Council Member Mike Siegel said. 'And so that's kind of the balance, you know, SB 4 and other state legislative efforts that constrain our local control. We have to stay within those parameters and still do as much as we can.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Newsweek
21-05-2025
- Business
- Newsweek
Texas Homeowners Could Get Major Tax Cuts
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Texas House of Representatives voted unanimously on Tuesday to advance two bills that could give homeowners significant relief on their property taxes. Why It Matters Texas lawmakers' efforts to lower the property tax burden on homeowners are part of a nationwide movement spearheaded by GOP-led states to significantly curtail or even eliminate property taxes. Four states — including Florida, Illinois, Kansas, and Pennsylvania — currently have plans to abolish property taxes entirely. In the Lone Star state, the issue is particularly urgent. Property taxes have skyrocketed since the pandemic, as higher demand driven by out-of-state newcomers led to a surge in home values. While Texas does not levy a personal income tax and has no state property tax, homeowners pay among the highest property taxes in the country to local governments. The money is used for crucial local services including schools, streets, roads, police and firefighting. Homes under construction in Austin, Texas, in April. Homes under construction in Austin, Texas, in To Know Texas lawmakers plan to spend at least $51 billion of state funds to cut property taxes for homeowners in the next two years — a measure that Republican Governor Greg Abbott described in February as an emergency item for the new legislative session. The two bills moved forward by the House this week are Senate Bill 4 and Senate Bill 23, both introduced by Sen. Paul Bettencourt, a Houston Republican. SB 4 would change the state's homestead exemption from $100,000 to $140,000, reducing the required threshold for a home's taxable value. According to the bill's supporters, the proposal would save eligible homeowners' nearly $500 in property taxes every year. SB 23 would raise a different homestead exemption for older homeowners or those with disabilities from $10,000 to $60,000. This is on top of the exemptions for all Texas homeowners. Bettencourt said the higher exemption would save disabled and senior homeowners more than $950 annually in property taxes. Meanwhile, House Bill 9, introduced by Republican Rep. Morgan Meyer, aims to provide relief to businesses in the state. The bill aims at exempting up to $125,000 of businesses' inventory from being taxed by school districts, cities, counties, and any other local governments. This bill was approved by the Senate last week and changes made by the chamber were signed off by the House on Monday. Newsweek contacted Bettencourt's office for comment on Wednesday morning. What People Are Saying Rep. Morgan Meyer (R-University Park), the House sponsor of SB 4, said on Tuesday: "This is a tightly negotiated relief package. This is the amount of money that we have for property tax relief, so we need to stick to what has been agreed to with the Senate and the governor... Every member of this chamber wants as much property tax relief as we can, but only what we can afford." Rep. Brian Harrison (R-Midlothian) said on the House floor on Tuesday: "You may call yourself a homeowner in the state of Texas, but the reality is, you are just a renter, and the government is your landlord. And if you don't believe me, try not paying your property tax till the end of the year. You will find out real fast who really owns your home in this state. Apparently, this is the best we are going to get this session." What Happens Next The two bills — SB 4 and SB 23 — must come back before the House on Wednesday for a final vote. The bills then return to the Senate, which must approve any changes introduced by the House before sending them to Gov. Abbott. The current legislative session ends on June 5. Lawmakers have until then to make sure their proposals reach the governor. The bills, however, require amendments to the Texas Constitution to come into effect, which will require the approval of the state's voters.
Yahoo
20-05-2025
- Business
- Yahoo
Property tax cuts for homeowners set for Texas House vote
AUSTIN (Nexstar) – Lawmakers in the Texas House are set to vote on a package of legislation that aims to cut property taxes for homeowners in the state. The House calendar calls for votes on two bills and two constitutional amendments to increase the state's homestead exemption, which is the amount of a home's value that is not subject to property taxes. House members will consider Senate Bill 4, which calls for raising the homestead exemption for all homeowners from $100,000 to $140,000. Supporters of SB 4 said the increase could save the average Texas homeowner nearly $500 annually in taxes. Senate approves $140K homestead exemption to increase property tax relief The House is also scheduled to take up Senate Bill 23, which would provide an additional raise to the homestead exemption for those 65 and older. It would raise the additional homestead exemption for elderly and disabled homeowners from $10,000 to $60,000. That's on top of the current $100,000 exemption for Texas homeowners. Both SB 4 and SB 23 require amendments to the Texas Constitution to take effect. The House is also scheduled to vote on corresponding resolutions to put the issues before Texas voters in November. If SB 23 passes in tandem with SB 4, the total homestead exemption for elderly and disabled homeowners would rise to $200,000. Bill author Sen. Paul Bettencourt, R-Houston estimates that the increased exemption will save the average over-65 or disabled homeowner more than $950 annually in property taxes. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
