Good news for homeowners & small businesses! After much debate, discussion, & 2 Special Sessions of the Texas Legislature, the Texas House & Senate finally passed $18 Billion in Property tax cuts.
The package comprises three bills: Senate Bill 2, which addresses property taxes; Senate Bill 3, which provides franchise tax relief; House Joint Resolution 2, the constitutional amendment required to enact the tax cuts.
Senate Bill 2 (SB 2) raises the homestead exemption from $40,000 to $100,000 ($110,000 homeowners age 65+), saving the average homeowner ~40% on taxes (~$1,300/year).
Senate Bill 3 (SB 3) provides Texas Franchise Tax relief by increasing the revenue exemption from $1.23Mil to $2.47Mil. Additionally, SB 3 removes the requirement to file a no-tax due information report for businesses that don’t owe franchise tax due to the exemption.
In addition to the benefits for homesteads & small businesses, there is relief for non-homestead & commercial properties. These properties will be limited to a 20% increase in appraised value. In addition to decreasing property taxes for your home, you should also have some tax relief if you own a vacation house, rental house, or practice.
Voters must approve these bills because they require a constitutional amendment to take effect. Joint House Resolution (HJR 2) is the constitutional amendment to authorize these tax cuts. HJR 2 will be on the November 2023 ballot & it is expected to pass.
If you have moved or haven’t voted in a while, you may need to re-register to vote. You can check your voter registration status online on the Texas Secretary of State page at: https://teamrv-mvp.sos.texas.gov/MVP/mvp.do.So remember to check your voter registration status & be prepared to vote for property tax relief this November!
References
https://capitol.texas.gov/tlodocs/882/analysis/html/SB00003H.htm
https://capitol.texas.gov/tlodocs/882/analysis/html/SB00002H.htm
https://www.texastribune.org/2023/07/11/texas-house-property-tax-cuts-deal/