FOR IMMEDIATE RELEASE
March 22, 2023
Austin, TX – The Texas Senate’s unprecedented $16.5 billion Property Tax Plan, that will provide historic relief to both homeowners and businesses, passed out of the Senate on a bipartisan and unanimous total vote on all measures. “The Senate’s Property Tax Relief package moved through the Senate like a bullet train 124-0 because all 31 Senators know Texas homesteaders and business owners need real property tax relief, and what this package delivers to Texans is permanent, off the chart’s tax relief,” remarked Senator Bettencourt, the author of Senate Bills 3 and 4.
SB 3, if approved by voters, will save 5.72 million Texas homestead owners $798 per year when they see their next tax bill in the Fall by raising the Homestead Exemption 75% to $70,000. SB 3 will also save 2.07 million homestead owners over-65 and disabled $1,062 plus per year by tripling the over-65 and disabled exemption to $30,000. It will be added to the $70,000 homestead exemption for a whopping $100,000 in total exemptions for over-65 and disabled Texas homesteaders.
SB 4 will provide an additional $5.38+ billion in ISD tax rate compression and will reduce recapture by expanding the school finance band to 20%. Rate compression benefits all taxpayers and reduces recapture by funding additional Maximum Compressed Rate (MCR) compression in school finance formulas. Expanding the school finance equity band will allow school districts to reduce their M&O tax rate further. Texas Taxpayers and Research Association (TTARA) President, Dale Craymer, commented on the benefits of compression saying, “It provides balanced relief for all taxpayers - rate compression obviously benefits all taxpayers.”
SB 5 by Senator Tan Parker will create an Inventory Tax Credit totaling $1.5 billion. SB 5 will raise the Business Personal Property Exemption to $25,000 from $2,500, for $225 million. In addition to this unprecedented BPP exemption, SB 5 will also provide over $700 million in additional inventory tax relief. Finally, SB 5 will also cut business compliance costs, therefore saving businesses even more money.
"Small businesses are the bedrock of our economy, and they have been hit hard by record inflation," said Senator Parker. "SB 5 will provide meaningful tax relief for businesses across Texas, helping them stay afloat, creating more job opportunities for Texans, and keeping Texas a competitive global player as the 8th largest economy in the world" added Senator Parker.
SJR 3 is the Constitutional Amendment that voters will vote on during the November 2023 General Election if passed by the Texas House. If approved by voters, the Senate’s unprecedented Property Tax Relief Plan consisting of SB 3, SB 4, and SB 5 will go into effect. “We are certain that the public will vote for this unprecedented property tax relief package if given the opportunity. It will be retroactive on January 1st and cut tax bills in 2023!” concluded Senator Bettencourt and Senator Parker. In May 2022, Texas voters overwhelmingly voted for property tax relief (85%) by increasing the Homestead Exemption to $40,000.