The Texas Senate unanimously passed Senate Bill 4, raising the homestead exemption from $100,000 to $140,000, with a $150,000 exemption for homeowners 65 and older. This is one of the largest increases in state history and is intended to reduce property taxes in areas with high rates, such as Pearland and Conroe. Lieutenant Governor Dan Patrick stated, "I have made increasing the Homestead Exemption my mission because it is the best way to deliver meaningful property tax reductions for homeowners," as reported by Chron.com.
The fiscal impact of the bill is expected to be significant, with an average homeowner savings of approximately $1,762.87, an increase from the $1,266.30 savings provided by the 2023 property tax relief, according to Senator Paul Bettencourt's office. Additionally, Senate Bill 1, the General Appropriations Act, could add an average savings of $133.13 for homestead properties, as stated by Chron.com.
Texas renters do not qualify for homestead exemptions, but some landlords may pass on property tax savings as rent growth slows. Some lawmakers say constituents are uncertain about the impact of the tax cuts. Lt. Gov. Dan Patrick said, "I'm going to shout it from the rooftops because it is a great bill." The bill now moves to the Texas House, and if approved, voters will decide through a constitutional amendment, according to ABC13.
