SAN ANTONIO (KTSA News) — Texas Governor Greg Abbott has now signed what he is calling the largest property tax cut in Texas history.
The legislation totaling $18 billion in tax cuts passed during Special Session #2 of the 88th Legislature. The Governor was joined at the historic bill signing in New Caney by Lieutenant Governor Dan Patrick, Speaker Dade Phelan, Senator Paul Bettencourt, Representative Morgan Meyer, and other members of the Texas Legislature.
“Today, I am signing a law that will ensure more than $18 billion in property tax cuts—the largest property tax cut in Texas history,” said Governor Abbott. “If passed by voters this fall, Texas homestead exemptions will rise to $100,000, senior homeowners will be protected from being priced out of their home, the small business exemption for the Franchise Tax will double, and Texas small businesses will be protected from excessive appraisal increases. None of these monumental changes could have been accomplished without the hard work of Lieutenant Governor Patrick and Speaker Phelan. We all came together to offer Texans the property tax relief they so desperately deserve, and I am proud to sign these new laws today.”
In his 2023 State of the State address, Governor Abbott made cutting property taxes for Texans an emergency item for the 88th Legislature. Under Senate Bill 2 and Senate Bill 3, $18 billion of Texas’ historic budget surplus will be allocated toward driving down school district property tax rates, increasing homestead exemptions for Texas homeowners, and increasing Franchise Tax exemptions and appraisal caps for small businesses.
“The signing of this Texas-sized tax cut, the biggest property tax cut in history, is a massive victory for all 5.7 million Texas homeowners,” said Lieutenant Governor Patrick. “The combination of compression and the $100,000 homestead exemption is a powerful one-two punch that will cut school property taxes for the average priced home by $1,250 to $1,450 every year on their homesteaded property.”
Senate Bill 2 (Bettencourt/Meyer) provides property tax relief through tax rate compression, an increase in the homestead exemption, and a pilot project limiting the growth in appraised values. For tax year 2023, this will save the average Texas homestead owner over $1,200. Texas homestead owners over 65 or with a disability will see over $1,400 in savings.
Senate Bill 3 (Bettencourt/Geren) law increases the Franchise Tax “no tax due” threshold to $2.47 million and removes burdensome filing requirements for those who do not owe tax.
The constitutional amendment to provide the largest property tax cut in Texas history will be added to the Texas Constitution if approved by a simple majority of Texas voters on November 7, 2023.