More Texas tax relief ahead? SB 4 to add onto historic property tax relief

HOUSTON - Texas Senator Paul Bettencourt announced on Friday he's filed a bill in an effort to increase the residence homestead exemption.

More Texas property tax relief ahead?

What we know:

According to a release, the bill would increase the residence homestead exemption to $140,000, which would mark the largest exemption in Texas history. 

As FOX 26 reported, the most recent substantial homeowners relief passed last legislative session, raising the exemption to $100,000. 

With the passage of SB 4, Texans will have the opportunity to vote on another increase - raising the homestead exemption to a record $140,000. 

Officials said to ensure that neither local taxpayer nor school district pay for the homestead exemption, Senate Bill 4 includes a hold-harmless provision, guaranteeing that any funding shortfalls resulting from the exemption increase will be fully covered by the state. 

"SB 4 will not only cut ISD property taxes, but the state pays the bill, guaranteeing that no school district loses out on critical funding," Senator Bettencourt added. "This measure is a win-win for taxpayers and everyone alike."

Senator Bettencourt is joined by Senators’ Alvarado, Birdwell, Blanco, Campbell, Cook, Creighton, Eckhardt, Flores, Gutierrez, Hagenbuch, Hall, Hancock, A. Hinojosa, J. Hinojosa, Huffman, Hughes, King, Kolkhorst, Menendez, Middleton, Nichols, Parker, Paxton, Perry, Schwertner, Sparks, West, Zaffirini as joint authors of SB 4.

What they're saying:

"My office estimated $363.44 in annual school property tax savings for the average Texas homestead based on a statewide ISD average tax rate of $0.9086, but wait, we're not done yet!" said Bettencourt.

By the numbers:

Senate Bill 4 works in conjunction with Senate Bill 1, the General Appropriations Act, which provides 6.8 pennies of school district tax rate compression. 

The compression will reduce the statewide average ISD tax rate from $0.9766 to $0.9086, resulting in an additional $133.13 in savings for the average homestead property owner. 

"When combined with the savings from Senate Bill 4, the total estimated annual tax reduction for Texas homeowners amounts to $496.57!" Bettencourt said. 

Senate Bill 4 maintains its protections for over-65 and disabled homestead exemption owners, ensuring that as property values rise and tax rates compress, their freeze values automatically adjust to provide continued tax relief.

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