Homeowners to get a $100,000 Homestead Exemption!
I am excited to announce that we have reached an agreement on proposed legislation which will deliver the biggest property tax cut in Texas history.
Speaker Dade Phelan and I met last week in Austin and, along with members of the House and Senate, have continued working day and night to reach a consensus. It made a difference. The deal represents a significant win for providing relief to all Texas property owners and reflects my and the Senate’s commitment to providing a $100,000 homestead exemption for nearly 5.7 million homeowners.
Homeowners will receive an average of $1,260-1,460 in tax cuts per year, for every year they homestead their property for the rest of their lives.
Highlights of the $18 billion tax cut legislation include:
- Over $12 billion will be spent on reducing the school property tax rate for all homeowners and business properties.
- Every homeowner who homesteads their home (approximately 5.7 million homeowners) will get a $100,000 homestead exemption.
- Non-homesteaded properties valued at $5 million and under, including residential and commercial properties, will receive a 20% circuit breaker on appraised values as a 3-year pilot project.
- Legislation will also include savings on the franchise tax for small businesses and create newly elected positions on local appraisal boards.
I started working to reduce property taxes at a Capitol hearing in 2003, four years before I was elected to the Texas Senate. It has been a long road, but this is a great day for all property owners. I thank all 31 Senators for working together and being patient through this process. I especially thank Senator Paul Bettencourt (R-Houston), who was on that bus trip 20 years ago, for his work on this legislation.
You will vote in November for the Constitutional Amendment for the $100,000 Homestead Exemption. If approved, the $100,000 Homestead Exemption will be permanent and codified in the Texas Constitution.
Thank you all for your support and everything you do to keep Texas red. May God bless you and your family, and may He continue to bless the greatest state of all—Texas.
Lieutenant Governor of Texas