Texas Legislature Sends Property Tax Cut Bills To Governor

Texas lawmakers have advanced two key Senate bills aimed at increasing homestead exemptions to reduce property taxes for homeowners, particularly benefiting seniors and individuals with disabilities. Senate Bill 4 proposes raising the general homestead exemption from $100,000 to $140,000, while Senate Bill 23 aims to increase exemptions for seniors and disabled homeowners to $200,000, potentially eliminating school property taxes for many in these groups. If approved by the governor and voters in the upcoming November ballot, these measures could save homeowners nearly $500 annually and provide significant tax relief across the state, affecting both urban and rural residents. Supporters emphasize the financial relief will allow families to redirect savings toward quality-of-life expenses, highlighting homeownership as part of the American dream. However, concerns have been raised about the long-term fiscal impact on the state budget, as the exemptions will cost an estimated $4 billion over two years and rely on state reimbursements to school districts. The proposals reflect bipartisan support but also include some opposition, particularly regarding fairness for renters and the sustainability of funding these tax cuts during economic downturns.