Homeowners and businesses could see some relief from their property taxes after the Texas Senate unanimously passed a package of bills on Wednesday, pending a statewide election.
“The property tax relief bills I joint authored and we passed out of the Senate this week total $16.5 billion,” state Senator Juan “Chuy” Hinojosa, D-McAllen, said Friday via a statement. “For the past three sessions we have focused on reducing property taxes to help our families burdened with paying these taxes that sometimes feels like a second mortgage.”
Hinojosa referred to Senate Bills 3, 4 and 5, along with Senate Joint Resolution 3 that, if passed by the Senate, would bring the changes proposed by the three bills to a vote before Texans in the upcoming general election.
“SB 3 will increase the Homestead Exemption from $40,000 to $70,000 which will in turn lower the amount of our home’s value subject to school taxes,” Hinojosa said. “Homeowners ages 65 and older and the disabled would see their additional exemptions jump from $10,000 to $30,000, resulting in a total Homestead Exemption of $100,000.”
Hinojosa noted it was the third time in ten years the homestead exemption was increased.
In 2015, voters approved an increase from $15,000 to $25,000. Last year, it was increased to $40,000 before reaching $70,000 in the current legislative session.
“It is estimated that this increase would save taxpayers an additional $341 on top of the average savings of $454 from the 2021 exemption,” Hinojosa added.
Senate Bill 4 would affect the tax rate school districts can levy by about seven cents. Hinojosa said it could provide “an additional $5.38 billion in school district tax rate compression and will reduce recapture for a number of school districts.”
For the past three sessions we have focused on reducing property taxes to help our families burdened with paying these taxes that sometimes feels like a second mortgage.
Business owners also stand to benefit from Senate Bill 5.
“I was also proud to joint-author SB 5 to increase the Business Personal Property tax exemption from $2,500 to $25,000 to provide tax relief to our businesses,” Hinojosa stated. “This bill also creates new inventory tax credits to further support our businesses and keep our Texas economy strong.
These three bills would take effect if Senate Joint Resolution 3 passes this session and the voters approve these provisions in a constitutional amendment in the November 2023 General Election.
To find a comprehensive list of bills filed — and the status of those bills — visit MyRGV.com and click the 88th Texas Legislative Session tab, which has an interactive spreadsheet and a comprehensive list of AIM Media Texas’ legislative coverage.