Texas Senate Passes Real Property Tax Relief for All Homeowners

With an immediate special session starting last week, Texas Senate Republicans, without delay, launched into action and again passed the largest property tax relief plan in history that would directly benefit all Texas homeowners. The House adopted a different plan during the special session then immediately adjourned without considering the Senate property tax relief plan.

Senate Bill 1, authored by Sen. Paul Bettencourt (R-Houston), offers a beneficial $100,000 homestead exemption for all the state's 5.72 million homeowners – putting money back in the pockets of homeowners.

SB 1 also lowers, "compresses", School Maintenance and Operating (M&O) property tax rates by 21.8%. SB 1's $100,000 homestead exemption would be permanent if approved by the voters in November and would save every homeowner $681/year, including on this year's property tax bill. It would save an average homeowner $20,442 over a 30-year mortgage! 

The total savings of the Senate's plan are in the range of $1,250/year to $1,450/year for homeowners, which is $500 to $700 a year more of a cut in property tax bills than the "compression" only House Plan. The Senate Tax Relief Plan dedicates about 70% of the $17.6 billion to compression for all properties, with the remaining 30% going to a $100,000 homestead exemption. The combination of a substantial homestead exemption and property tax compression is a very powerful way to deliver serious property tax relief.

Texas Senate Republicans will continue to work hard for the people of Texas and look forward to delivering $17.6 billion in property tax relief for families across the state.