Senate approves increased homestead exemption

On Feb. 11, the Senate Local Government Committee unanimously approved approximately $6 billion in new property tax relief.

Last legislative session, the Texas Legislature increased the homestead exemption from $40,000 to $100,000, reducing property taxes for homeowners across the state. This change shifted the burden of funding schools more to the state and lightened the load on property owners in school districts.

This session, lawmakers are eager to continue reducing property taxes in the same way. Senate Bill 4, authored by Sen. Paul Bettencourt (R-Houston), would provide roughly $3 billion in tax relief by increasing the homestead exemption to $140,000. Senior citizens and individuals with disabilities would have their exemption raised to $150,000. The measure provides an additional $3 billion in relief through tax rate compression, buying down the average school property tax rate from $0.9766 to $0.9086.

Continued tax relief was announced as an emergency item by Gov. Greg Abbott, and Lt. Gov Dan Patrick said tax relief is a priority for him this session. 

The full Senate unanimously approved the bill on Feb. 13, sending it to the House for consideration. 

But voters would have the final say in whether to give themselves a tax cut. Adjusting the homestead exemption requires voters to approve an amendment to the Texas Constitution.