The biggest property tax cut in state history could soon be on the way, putting hundreds of dollars back into the hands of Texas homeowners. Today we’re breaking down what you need to know about House Bill 2, the Property Tax Relief Act, by Rep. Morgan Meyer.
BY the numbers
The total property tax relief package by the Texas House totals $17.3 billion
$12 billion for the Property Tax Relief Act
An additional $5.3 billion appropriated from House Bill 1, which addresses tax rate compression.
But where will Texans notice changes?
Lower school district property taxes by 28%
Limit annual appraisal increases to 5% for all properties
Savings of $542 in 2024
Savings of $733 in 2025
How Texans will Benefit
This bill offers a long-term, sustainable solution to rapidly increasing property taxes. By reducing property taxes and capping appraisal increases, Texans will experience immediate financial relief, while simultaneously inheriting protection for years to come.
Property owners will also be protected from unexpected appraisal increases, better securing Texans financial stability in the real estate market.
Additionally, tax assessors will be required to reveal escrow amounts if requested by property owners.
Changes to the School Finance System?
With HB 2, total recapture payments will be reduced by $4.5 billion and the number of school districts subject to recapture will shrink from 241 to 211. The House’s plan also increases the State’s share of public education to over 50%, marking a remarkable investment in our state’s school funding.
What’s next for HB 2?
The House Ways and Means Committee voted an amended version out favorably on Monday, March 20. The bill is now on its way to the House floor for consideration by the full House.
Follow the bill here.