Skyrocketing property taxes – increases of 10 to 50% in just two years – have created unaffordable conditions for Texas homeowners. Texas House Republicans took action this session, passing the largest property tax cut in state history.
Senate Bill 3, the Property Tax Relief Act, sponsored by Rep. Morgan Meyer, protects hardworking Texans by delivering sustainable, predictable property tax relief. Totaling $21 billion with assistance from the proposed state budget, the bill caps appraisal increases at 5% for ALL property each year, further compresses school district tax rates by 15 cents, and increases the homestead exemption to $100,000 for all Texans and $110,000 for seniors.
The 5% appraisal cap will protect property owners, not just homeowners, from unexpected and dramatic increases in their appraisals. School district tax rates will be compressed by 15 cents in addition to the 10-cent compression included in House Bill 1. Together, these bills provide a 25 cent compression on school district tax rates and will provide meaningful relief for property owners. Lastly, SB 3 will increase the homestead exemption from $40,000 to $100,000 for all Texans. This relief will help lower property taxes for years to come. For Texans seniors, the relief is even greater with a homestead exemption of $110,000.
With Senate Bill 3, homeowners will see savings of $1,325 in 2024 and $1,518 in 2025 for a $350,000 home. The legislation also increases the state’s share of public education with $15.5 billion in new state dollars, marking a notable investment in our state’s public school funding by requiring the state to fund roughly 54% of public education.
All Texans will have a say on the key tenets of this legislation at the ballot box in November. Senate Joint Resolution 3 would amend the Texas Constitution to allow the legislature to limit the appraisal maximum value of all real property, not just homestead property as the law currently stands, and increase the homestead exemption.
Texas homeowners deserve property tax security, and House Republicans proved their dedication this session to keep owning property affordable for all.
For details on more Texas House Republican Caucus victories from the 88th Legislative Session, check out our other recent blog posts.