Texas Property Tax Relief Bill Passes State Senate. How Much Can You Save?
A new property tax relief bill has already passed in the Texas Senate just hours after Gov. Greg Abbott added it to the agenda for the Texas legislature’s third special session on Wednesday.
The measure — which would use a state tax surplus to reduce property tax bills for the 2022-2023 school year — was designated as Senate Bill 1 by Lt. Gov. Dan Patrick on Monday.
“Senate Bill 1 follows the clear and simple principle that as Texas’ economy grows, and the state receives surplus revenues, a portion must first be returned to taxpayers because it’s their money,” Patrick said in a press release after the bill’s passage.
“This signifies a quantum shift in the way we think about spending our surplus dollars. Texas homeowners must receive tax relief before we commit to any new spending. I thank Sen. Bettencourt for his continued leadership on this critical issue.”
The measure would provide a minimum of $2 billion in funding to independent school districts, in return for which ISDs would reduce homeowners’ tax rates by roughly 3.3 cents. For example, the owner of a home with a taxable value of $300,000 would see their tax bill reduced by $100.
Recommended Read: US Implements Mass Expulsion of Haitian Migrants from Texas
Texas lawmakers need to tackle distribution in this year’s third special session
The legislation would allow the state to spend $ 2 billion in projected budget surpluses to temporarily reduce property taxes tax brackets in the 2022-2023 school year.
The bill’s author, Republican Senator in Houston, Paul Bettencourt, said a homeowner with a $ 300,000 home that is taxable (state median) would save about $ 200 next year.
“We’re really doing a one-year notch tighten on the belt to make sure the property tax relief comes to the taxpayers to the greatest extent possible,” Bettencourt said on the Senate floor before the vote.
The bill now goes on to the House of Representatives.
Governor Abbott also said Wednesday that he is adding bail reform to the special session.
“These two additional agenda items are crucial to improving the quality of life for all Texans,” Abbott said in a statement. “I look forward to working with my partners in legislation to pass on these additional items that will lower property taxes and keep Texans safe.”