Texas Senate unanimously approves $16.5 billion in property tax relief
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HOUSTON - The Texas Senate has unanimously agreed to approve $16.5 billion in property tax relief for Texas homeowners, according to Senator Paul Bettencourt.
According to a release, SB 3, SB4, SJR 3, and Senator Parker's SB 5 all passed out of the Senate on a bipartisan ‘4-PEAT’ 124-0 vote.
PREVIOUS COVERAGE: Senator Paul Bettencourt files bill to raise ISD homestead property tax exemption
"The Senate’s Property Tax Relief package moved through the Senate like a bullet train 124-0 because all 31 Senators know Texas homesteaders and business owners need real property tax relief, and what this package delivers to Texans is permanent, off the chart’s tax relief," remarked Senator Bettencourt (R-Houston), "the architect" for the Senate’s Property Tax Plan.
If approved by Texas voters, SB 3, will save 5.72 million Texas homestead owners $798 per year when they see their next tax bill in the fall by raising the Homestead Exemption 75% to $70,000. SB 3 will also save 2.07 million homestead owners over 65 and disabled $1,062 plus per year by tripling the over 65 and disabled exemption to $30,000. It would be added ot the $70,000 homestead exemption for a whopping $100,000 in total exemptions for over 65 and disabled Texas homesteaders, officials said.
SB 4 will provide an additional $5.38+ billion in ISD tax rate compression and will reduce recapture by funding additional maximum compressed rate (MCR) compression in school finance formulas.
SB 5, which was filed by Senator Parker from Flower Mound, Texas, will create an Inventory Teax Credit totaling $1.275 billion. First, SB 5 will raise the Business Personal Property Exemption to $25,000 from $2,500 for $225 million totaling $1.5 billion. Officials said it will also cut business compliance costs, therefore saving businesses more money.
"I’ve been working with Lt. Governor Patrick for 20 years and never thought I would be passing $16.5 billion Dollars of Property Tax Relief in a single day! IT’S UNPRECEDENTED!" said Senator Bettencourt in a news release.
SJR 3 is the Constitutional Amendment that voters will vote on during the November 2023 General Election if passed by the Texas House. If approved by voters, the Senate’s unprecedented Property Tax Relief Plan consisting of SB 3, SB 4, and SB 5 will go into effect.
"I believe the public will vote for this unprecedented river of property tax relief if given the opportunity. It will be retroactive on January 1 and cut tax bills in 2023!" concluded Senator Bettencourt.
In May 2022, Texas voters overwhelmingly voted for property tax relief (85%) by increasing the Homestead Exemption to $40,000.