Gov. Abbott signing $10 billion property tax relief package

DENTON, Texas (Nexstar) — Governor Greg Abbott, joined by some state lawmakers, signed a property tax relief package Monday that will raise the homestead exemption by 40% and zero-out property tax bills for some Texas seniors.

Senate Bill 4, authored by State Sen. Paul Bettencourt, R-Houston, will raise the homestead exemption from $100,000 to $140,000. Bettencourt’s other property tax bill, SB 23, would raise exemptions for disabled Texans and those over the age 65 from $10,000 to $60,000. Coupled with SB 4, SB 23 raises the the homestead exemption for Texas seniors to $200,000.

The Governor will also sign House Bill 9, which raises the Business Personal Property exemption to $125,000. SB 4 and SB 23 would need to be approved by a majority of Texas voters in the November election.

“This will help millions of Texans stay in their homes, let seniors age in place, and allow others to grow their businesses for generations to come,” said Bettencourt in a news release.

According to Bettencourt’s office, the new exemptions will save 5.7 million Texas homeowners about $484 per year, $950 per year for 2.08 million seniors, and $2,500 per year for small businesses.

Even though both SB 4 and SB 23 passed unanimously in the Texas House of Representatives, the proposals did not pass without some criticism. State Rep. Brian Harrison, R-Midlothian, spoke out against SB 4 on the House floor before voting yes on the measure. He argues the property tax cuts do not go far enough.

“It is entirely conceivable that many or most homeowners and property owners will not see any real savings at all because the appraisals are likely to increase and eat up this new exemption,” Harrison said.