Texas Senate proposes property tax cut bills, what homeowners should know
HOUSTON - Proposed property tax cuts are working their way through the Texas state capitol.
But what could these cuts mean for homeowners? Here's a breakdown.
The Senate unanimously approved Lt. Governor Dan Patrick's agenda to use some of the state's $33 billion surplus to cut home and business property taxes, and pump billions of dollars into schools.
In Senate Bill 3, Senator Paul Bettencourt (R-Houston) proposes increasing the homestead exemption from $40,000 to $70,000, plus another $30,000 for seniors and disabled Texans.
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He writes in a press release that on a $300,000 home, the first $70,000 would not be taxed, saving homeowners $798 a year. Seniors and disabled homeowners would save $1,062 a year.
Senate Bill 4 would allocate an additional $5.38 billion for public schools and would lower the payments from property-wealthy districts to make up for property-poor districts.
It would cut school property tax rates by $0.07 per every $100 of assessed value.
For that $300,000 dollar home, it would shave $210 off the property tax.
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And Senate Bill 5, proposed by Senator Tan Parker (R-Flower Mound), would create an Inventory Tax Credit by raising the business property exemption from $2,500 to $25,000, reducing inventory tax bills by about 20%.
The Senate also passed a joint resolution that would send these bills to voters on the November 2023 ballot.
Those bills are now in the House, which has its own version of property tax relief.
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The House bill would reduce the maximum that home appraisals can go up each year from 10% to 5% and would extend the limit to business properties, too.
A $300,000 home could be appraised at a maximum of $315,000 the next year, instead of $330,000.
There is still much debate over these bills, but we'll continue to keep you posted on what happens.