AUSTIN (KXAN) — A bill aimed at lowering property taxes unanimously passed a Texas Senate committee Tuesday, clearing the way for a vote before the full Senate. The Senate Local Government Committee voted 6-0 to approve Senate Bill 4, which aims to raise the state’s homestead exemption to $140,000.
The homestead exemption is the amount of a home’s value that is exempt from taxation.
Changing the exemption would require approval by Texas voters to amend the state’s constitution. Committee members also approved Senate Joint Resolution 2, which would put that question on the ballot, if SB 4 passes.
State Sen. Paul Bettencourt, R-Houston, filed SB 4 last week, along with 28 other senators. The bill was also a priority for Lt. Gov. Dan Patrick.
“By following up on the largest, grandest, hugest property tax reduction in American
History, $22.7 Billion to be exact, SB 4 and SJR 2 provide more meaningful reduction to
Texas homeowners by raising the Homestead Exemption to $140k. This will be providing
an estimated $500 savings to the average homeowner annually,” Bettencourt said in a news release.
The bill also includes a “hold-harmless provision” that ensures the state will cover any lack of funding resulting from the homestead exemption increase, the release said.
Gov. Greg Abbott declared property tax relief an emergency item, clearing the way for lawmakers to swiftly pass legislation this session. The governor also called on the state to pass a law that will make it harder for a local taxing entity to raise its rates.
In November 2023, Texans voted to increase the homestead tax exemption and provide property tax relief. This came after Abbott signed Senate Bill 2 and Senate Bill 3, which were both property tax relief bills that provided an $18 billion tax cut for property owners in Texas.
In conjunction with SB 1, the General Appropriations Act, SB 4 will reduce the statewide average ISD tax rate from $0.9766 to $0.9086, which is expected to save homestead property owners an additional $133.13.
“Senate Bill 4 maintains its protections for over-65 and disabled homestead exemption owners,” Bettencourt said.
Now that SB 4 and SJR 2 passed in the Senate, the Texas House will now have an opportunity to vote.
