Austin, TX – The Texas Senate, on the first day of the 88th First Special Session, passed Senator Paul Bettencourt’s (R-Houston) unprecedented $17.6 billion Property Tax Plan that will provide REAL relief to Texas homestead owners and all Texas taxpayers! SB 1, along with the adjoining Constitutional Amendment, SJR 1, rocketed out of the Senate Committee on Finance, chaired by Senator Joan Huffman (R-Houston) 14-0 before being passed on the Senate floor. “This is the biggest property tax relief plan in the State’s history, $17.6 billion dollars and it will substantially help all Texas Taxpayers.” Said Senator Bettencourt, author of SB 1 and SJR 1. “It will save homeowners $681.42 more per year as it has a whopping $60,000 increase in the Homestead exemption for 5.72 million Texas homesteaders. That will help out to the tune of $20,442 over a 30-year mortgage!” SB 1 passed 30-0 off the Senate floor, with 30 Senators signed on as co-authors.

SB 1 will increase the homestead exemption by $60,000 to $100,000 and add an additional 10 cents Maximum Compressed Tax Rate (MCR) on top of the existing 10.98 cents of SCP tax rate compression. The combination of these is what generates the savings for homesteads. “Homeowners will see a $1,246 saving in year one and $1,292 in year two. BUT WAIT, THERE’S MORE! For over 65-and disabled homesteads the savings will be $1,416 in year one and $1,462 in year two.” He stated strongly. “Another unanimous Senate vote for Property Tax Relief.”

SJR 1, if approved by voters on November 7th, 2023, will save 5.72 million Texas homestead owners $1,245.93 this year when they see their next tax bill in the Fall by raising the Homestead Exemption to $100,000. SB 1 will also save 2.07 million homestead owners over-65 and disabled $1,416.29 plus this year by including, retroactively, the May 2022 increase approved by the voters.

10 cents of MCR compression will combine with 10.98 cents of State Compression Percentage, (SCP) knocking all ISD Maintenance and Operation (M&O) tax rates down near 21 cents. This yields a 21.8% reduction in ISD M&O tax rates statewide. “This is a blockbuster plan for all Texas taxpayers as the M&O ISD property tax rate for schools will drop 21.8% in two years. So, everyone benefits, and voters will get to vote on the $60,000 homestead increases up to $100,000 November 7, 2023. If the voters approve, SB 1 will immediately lower 5.72 million homeowners tax bills.” He concluded.

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