The Texas House has passed a landmark property tax relief bill following the Senate’s approval.
Final Signature
The $18 billion bill now awaits Governor Greg Abbott’s final signature, marking a significant step in alleviating the burden on property owners. Comprising Senate Bill 2, Senate Bill 3, and House Joint Resolution 2, the package aims to deliver the most significant property tax cut in Texas history. It includes raising the homestead exemption, limiting appraisal increases for commercial properties, and allocating funds to encourage school districts to reduce property taxes.
According to ValueWalk’s article, The bill requires constitutional amendment approval from voters in November. Democrats’ efforts for relief on renters and teacher pay raises were unsuccessful. However, a special session is anticipated in October to address education reforms. Once fully approved, the bill will benefit around 5.7 million homeowners, reducing property tax rates and raising the homestead exemption. Small businesses will be exempt from the state franchise tax, and specific commercial properties will have reduced tax appraisals for three years.
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Approximately 5.7 million homeowners stand to benefit from the $18 billion relief package. The bill aims to reduce property tax rates by 10.7 cents per $100 of value, utilizing around $7 billion, while raising the homestead exemption from $40,000 to $100,000 with an allocation of over $5 billion. Moreover, the bill extends its benefits to businesses and commercial real estate owners, with small businesses exempted from the state franchise tax and specific commercial properties subject to reduced tax appraisals for three years.
Overall tax savings for individuals are uncertain, but an average homeowner with a $300,000 property could save approximately $1,300 next year.