Texas Senate Sends Major Property Tax Relief Measures to Governor Abbott

Texas homeowners could see hundreds of savings on their annual property tax bills after the Texas Senate unanimously approved amendments to two key tax relief bills. Senate Bills 4 and 23, authored by Senator Paul Bettencourt (R), raise the state’s homestead exemption and now await Governor Greg Abbott’s (R) signature.

Under the new provisions, homeowners will be able to deduct $140,000 from their property value before taxes are assessed. That exemption rises to $200,000 for Texans over 65 or with disabilities.

“It’s a fantastic day for Texas taxpayers,” Sen. Bettencourt said during a press conference at the Capitol. According to him, the average homeowner will save nearly $500 annually, with seniors and disabled homeowners seeing savings closer to $1,000.

These measures are part of a sweeping package that includes over $51 billion in property tax relief, passed through both direct legislation and budget allocations.

Lt. Governor Dan Patrick (R), who has supported increasing the homestead exemption since 2017, emphasized the scale of the effort. “Just five sessions ago it was $15,000,” he said. “About one out of every four dollars in this budget are going towards tax relief.”

Lt. Gov. Patrick also praised the collaboration between the Texas Senate and House, crediting Speaker Dustin Burrows for a swift agreement.

“The Speaker and I came to an agreement on this bill, on this amount pretty much in about 15 minutes of conversation and a handshake,” said Patrick.

While the Senate bills target relief for homeowners, the House proposed parallel cuts for businesses, raising the exemption for business personal property to $125,000, expected to save the average business $2,500 annually.

Bettencourt noted the importance of the bill for housing affordability, particularly for those on fixed incomes.

“If you crank up the homestead exemptions on over-65 and disabled [homeowners], it lets them stay in their homes when they have the least amount of income in their lifetimes,” he said.

Senator Angela Paxton (R) added a personal note. “I’ve got two kids out in California; you think they’re ever going to buy a home out there? Probably not. my kids in Texas, because of things like this, they can own a home.”

The bipartisan support for the legislation was strong. “Property tax relief isn’t red, it isn’t blue – in fact, it’s green,” said Senator Carol Alvarado (D). Senator Royce West (D) called it “a model for bipartisan governance.”

Because the change alters the Texas Constitution, voters will decide in November whether to approve the increased exemptions. Similar past proposals have historically passed with overwhelming support.