Dan Patrick Makes Statement On New Bipartisan Property Tax Bill

Texas Lieutenant Governor Dan Patrick (R) shared his statement regarding a new bipartisan property tax bill.

“The Texas Senate has unanimously passed three historic property tax bills - SB 3, SB 4, & SB 5," tweeted Gov. Patrick.

"This is a great testament to Republicans and Democrats working together for all of their constituents.”

Senate Bill 3, which will increase the Homestead Exemption to $70,000, passed through the Texas senate unanimously.

The bill was accompanied by two more bills, Senate Bill 4 and Senate Bill 5. According to the statement, the respective bills will add additional property tax relief and increase the Business Personal Property Tax Exemption.

“Since the Comptroller stated in 2022 that Texas would have a budget surplus for the 2022-2023 biennium, I have been very clear that a significant chunk of that surplus must be returned to the taxpayers before committing to any new spending,” stated Gov. Patrick.

Gov. Patrick reminded his readers of his goals to “reduce and reform the property tax”.

“In 2015, I led the charge to increase the Homestead Exemption from $15,000 to $25,000.”

Patrick’s statement highlighted Sen. Paul Bettencourt’s SB 3, which includes a $30,000 increase in the Homestead Exemption.

“In 2021, we increased the Homestead Exemption to $40,000. This year, we are increasing the Homestead Exemption to $70,000, and for the over 2 million homeowners over the age of 65, the exemption will be $100,000.”

The lieutenant governor emphasized the amount of money that the bill could save taxpayers in the future.

“This will save homeowners thousands of dollars over the lifetime of their mortgage. Today, I am proud that the Texas Senate has passed this landmark $16.5 billion tax relief package for Texans, the largest in history.”

The statement reiterated the bipartisan effort that was used to pass the bills.

“All 31 Senators, Republicans and Democrats alike, were joint authors of this bill,” stated the lieutenant governor.

He continued, stating, “In 2019, the Governor signed House Bill 3 into law. HB 3 decoupled Texans’ appraisal values of their homes from the property taxes they pay, and this impact increases over time.”

“The law now automatically cuts school tax rates when local school property values grow by more than 2.5% per year. Thus, as property values increase, the school property tax rate decreases.”

The statement claims that the bill will help raise home appraisals.

“In short, home appraisals are no longer connected to your final tax bill. The genius of HB 3 in 2019 was restricting the size of government,” stated the lieutenant governor.

He continued, stating, “Many people saw their appraisals increase dramatically last spring, but when they got their final tax bill in the fall, they saw their taxes go down or stay close to the same.”

The reallocating of tax dollars is crucial to Sen. Bettencourt’s Senate Bill 4.

“Senate Bill 4, also by Sen. Paul Bettencourt, further compresses school tax rates giving homeowners even more savings. SB 4 also reduces recapture for a number of school districts,” said the Texas representative. 

“These two bills will save the average homeowner $756 in the first year. They will save the average over-65 homeowner $1,033 in the first year."

Sen. Parker’s bill focuses on various tax exemptions and business costs.

“Senate Bill 5, by Sen. Tan Parker, increases the Business Personal Property (BPP) tax exemption from $2,500 to $25,000. Increasing the BPP tax exemption also cuts business compliance costs.”

According to the statement, Sen. Parker’s contributions will save the state hundreds of millions of dollars per year.

“Additionally, SB 5 establishes new inventory tax credits for the first time in history at $700 million per year. The Texas economy is stronger than ever, and Texans know lower government regulation will unleash further growth in our economy,” reads the statement.

The lieutenant governor expressed his gratitude to all those who helped him in passing the legislation.

“I want to thank Chairman Bettencourt and Sen. Parker, Finance Chair Joan Huffman, R-Houston, and the entire Senate for sharing my commitment to fighting for Texas taxpayers and supporting this key legislative package,” stated Patrick.

“This historic $16.5 billion tax relief package is responsible and does not trade Texas’ future for a better today. Senate Bills 3, 4, and 5 decrease the size of government and ensure that Texas moves forward conservatively and on stronger economic footing.”