“I want to thank Chairman Bettencourt, Sen. Parker, Finance Chair Joan Huffman & the entire Senate for supporting this historic $16.5 billion tax relief package."
Texas Insider Report: AUSTIN, Texas – Lt. Gov. Dan Patrick issued this statement today following the Texas Senate’s unanimous passage of Senate Bill 3, Increasing the Homestead Exemption to $70,000, by Sen. Paul Bettencourt, R-Houston, Senate Bill 4, Adding Additional Property Tax Relief, by Sen. Paul Bettencourt, and Senate Bill 5, Increasing the Business Personal Property Tax Exemption by Sen. Tan Parker, R-Flower Mound:
“Texas’ budget windfall is due to the hard work of Texans and our strong and growing economy. Since the Comptroller stated in 2022 that Texas would have a budget surplus for the 2022-2023 biennium, I have been very clear that a significant chunk of that surplus must be returned to the taxpayers before committing to any new spending. 20 years ago as a private citizen, I traveled to the Texas Capitol with two busloads of citizens to fight against skyrocketing property taxes,” said Patrick.
"As a Senator and Lt. Governor, it's been my mission to reduce and reform the property tax system for all Texans. In 2015, I led the charge to increase the Homestead Exemption from $15,000 to $25,000. In 2021, we increased the Homestead Exemption to $40,000.
"This year, we are increasing the Homestead Exemption to $70,000, and for the over 2 million homeowners over the age of 65, the exemption will be $100,000. This will save homeowners thousands of dollars over the lifetime of their mortgage.
"Today, I am proud that the Texas Senate has passed this landmark $16.5 billion tax relief package for Texans, the largest in history," said Lt. Gov. Dan Patrick.
“Senate Bill 3, by Sen. Paul Bettencourt, increases the Homestead Exemption from $40,000 to $70,000 for 5.72 million Texas homeowners, an increase of 75%. Seniors 65 and over will receive a total homestead exemption of $100,000. All 31 Senators, Republicans and Democrats alike, were joint authors of this bill.
“In 2019, the Governor signed House Bill 3 into law. HB 3 decoupled Texans’ appraisal values of their homes from the property taxes they pay, and this impact increases over time. The law now automatically cuts school tax rates when local school property values grow by more than 2.5% per year. Thus, as property values increase, the school property tax rate decreases.
"In short, home appraisals are no longer connected to your final tax bill. The genius of HB 3 in 2019 was restricting the size of government. Many people saw their appraisals increase dramatically last spring, but when they got their final tax bill in the fall, they saw their taxes go down or stay close to the same,” Patrick said.
“Senate Bill 4, also by Sen. Paul Bettencourt, further compresses school tax rates giving homeowners even more savings. SB 4 also reduces recapture for a number of school districts. These two bills will save the average homeowner $756 in the first year. They will save the average over-65 homeowner $1,033 in the first year.
“Senate Bill 5, by Sen. Tan Parker, increases the Business Personal Property (BPP) tax exemption from $2,500 to $25,000. Increasing the BPP tax exemption also cuts business compliance costs. Additionally, SB 5 establishes new inventory tax credits for the first time in history at $700 million per year. The Texas economy is stronger than ever, and Texans know lower government regulation will unleash further growth in our economy.
“I want to thank Chairman Bettencourt and Sen. Parker, Finance Chair Joan Huffman, (R-Houston,) and the entire Senate for sharing my commitment to fighting for Texas taxpayers and supporting this key legislative package. This historic $16.5 billion tax relief package is responsible and does not trade Texas’ future for a better today.
"Senate Bills 3, 4, and 5 decrease the size of government and ensure that Texas moves forward conservatively and on stronger economic footing,” said Patrick.
"As a Senator and Lt. Governor, it's been my mission to reduce and reform the property tax system for all Texans. In 2015, I led the charge to increase the Homestead Exemption from $15,000 to $25,000. In 2021, we increased the Homestead Exemption to $40,000."This year, we are increasing the Homestead Exemption to $70,000, and for the over 2 million homeowners over the age of 65, the exemption will be $100,000. This will save homeowners thousands of dollars over the lifetime of their mortgage.
"Today, I am proud that the Texas Senate has passed this landmark $16.5 billion tax relief package for Texans, the largest in history," said Lt. Gov. Dan Patrick.
“Senate Bill 3, by Sen. Paul Bettencourt, increases the Homestead Exemption from $40,000 to $70,000 for 5.72 million Texas homeowners, an increase of 75%. Seniors 65 and over will receive a total homestead exemption of $100,000. All 31 Senators, Republicans and Democrats alike, were joint authors of this bill.
“In 2019, the Governor signed House Bill 3 into law. HB 3 decoupled Texans’ appraisal values of their homes from the property taxes they pay, and this impact increases over time. The law now automatically cuts school tax rates when local school property values grow by more than 2.5% per year. Thus, as property values increase, the school property tax rate decreases.
"In short, home appraisals are no longer connected to your final tax bill. The genius of HB 3 in 2019 was restricting the size of government. Many people saw their appraisals increase dramatically last spring, but when they got their final tax bill in the fall, they saw their taxes go down or stay close to the same,” Patrick said.
“Senate Bill 4, also by Sen. Paul Bettencourt, further compresses school tax rates giving homeowners even more savings. SB 4 also reduces recapture for a number of school districts. These two bills will save the average homeowner $756 in the first year. They will save the average over-65 homeowner $1,033 in the first year.
“Senate Bill 5, by Sen. Tan Parker, increases the Business Personal Property (BPP) tax exemption from $2,500 to $25,000. Increasing the BPP tax exemption also cuts business compliance costs. Additionally, SB 5 establishes new inventory tax credits for the first time in history at $700 million per year. The Texas economy is stronger than ever, and Texans know lower government regulation will unleash further growth in our economy.
“I want to thank Chairman Bettencourt and Sen. Parker, Finance Chair Joan Huffman, (R-Houston,) and the entire Senate for sharing my commitment to fighting for Texas taxpayers and supporting this key legislative package. This historic $16.5 billion tax relief package is responsible and does not trade Texas’ future for a better today.
"Senate Bills 3, 4, and 5 decrease the size of government and ensure that Texas moves forward conservatively and on stronger economic footing,” said Patrick.
