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Miami Herald
3 days ago
- Business
- Miami Herald
More Property Tax Relief Coming For Texans
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. Related Articles Texas Sex Offender On The Run After Escaping Psychiatric HospitalMap Shows Which States Lost Most Tax Money After Recent Population ShiftsHow to Watch Texas vs Florida: Live Stream Women's College Softball World Series, TV ChannelMap Shows States With Most Furry Conventions 2025 NEWSWEEK DIGITAL LLC.
Newsweek
3 days ago
- Business
- Newsweek
More Property Tax Relief Coming For Texans
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 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. Why It Matters 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. What's in the New Texas Property Tax Bill? 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. A Luxury mansion pictured in River Oaks, Houston, Texas in 2023. A Luxury mansion pictured in River Oaks, Houston, Texas in 2023. Artistic Operations/GETTY State Spending and Fiscal Concerns 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. No Direct Relief for Renters 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. The Broader National Movement 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. What People Are Saying 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." What Happens Next 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.
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
Another big tax cut for Texas homeowners appears imminent
DALLAS — Texas homeowners are one step closer to a bigger tax break after the state House gave unanimous preliminary approval to a set of legislative proposals Tuesday. House members advanced bills aimed at giving homeowners relief on the property taxes they pay toward school districts, the biggest chunk of a property owner's tax bill. Senate Bill 4 by state Sen. Paul Bettencourt, a Houston Republican, would change the state's homestead exemption, which reduces how much of a home's value can be taxed to pay for public schools, from $100,000 to $140,000. Senate Bill 23, another Bettencourt proposal, would raise a separate homestead exemption for homeowners who are older or have disabilities from $10,000 to $60,000. Both bills — key priorities for Lt. Gov. Dan Patrick, who leads the Texas Senate — must come back before the House Wednesday for a final vote before heading to Gov. Greg Abbott's desk. Providing bigger tax breaks to homeowners is a key component of a deal brokered by Republicans in the Texas Legislature to lower tax bills for Texans, who pay among the highest property taxes in the country. The other major piece is giving business owners greater exemptions on their inventory. Texas is one of the few states that taxes businesses' inventory. House Bill 9 by state Rep. Morgan Meyer, R-University Park, would exempt up to $125,000 of businesses' inventory from being taxed by school districts, cities, counties or any other taxing entity. Under current law, businesses don't have to pay taxes on that property if it's worth $2,500 or less. [Texas businesses feel the pinch from Trump's tariffs, Fed survey finds] The Texas Senate approved that bill last week, and House members gave a thumbs-up Monday to changes that chamber made. House lawmakers shot down a push by the chamber's more conservative members to boost the homestead exemption to $160,000. Supporters of the failed amendment argued that legislators could further tap the state's $24 billion surplus to pay for greater relief. But other lawmakers stressed that state budget writers have only set aside enough money to pay to raise the exemption to $140,000. The owner of a home valued at $302,000 — about the typical Texas home value last year, according to Zillow — would have saved more than $500 on their 2024 school taxes had the $140,000 exemption been in place that year, according to a Tribune calculation. That's when the exemption is combined with $3 billion in cuts to school tax rates proposed in the state's upcoming two-year budget. Texas lawmakers plan to spend $51 billion on cutting property taxes over the next two years. State budget watchers and some lawmakers, including Republicans, worry that the state won't be able to afford tax cuts in the long term. Voters in November will have the final say on whether the tax relief takes effect. The changes must be approved by voters because they each involve amending the Texas Constitution. Lawmakers appear on track to pass their major property tax legislation before they leave Austin in June. That's a marked difference from two years ago, when House and Senate leaders couldn't come to terms on a tax-cut deal before the clock ran out, forcing Abbott to call two special sessions to come to terms. First round of TribFest speakers announced! Pulitzer Prize-winning columnist Maureen Dowd; U.S. Rep. Tony Gonzales, R-San Antonio; Fort Worth Mayor Mattie Parker; U.S. Sen. Adam Schiff, D-California; and U.S. Rep. Jasmine Crockett, D-Dallas are taking the stage Nov. 13–15 in Austin. Get your tickets today!
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.
