Seal of the Senate of the State of Texas Welcome to the Official Website for the Texas Senate
Seal of the Senate of the State of Texas
Welcome to the official website for the
Texas Senate
Senator Paul Bettencourt: District 7
Press Release
August 9, 2023
Contact: Michael Geary
(512) 810-1076
Senator Paul Bettencourt’s Huge property tax reduction bill is ceremonially signed into law!
Voters have final approval on Proposition 4, the record $18 billion property tax bill on November 7, 2023

Austin, TX – Senator Paul Bettencourt (R-Houston) spoke at the ceremonial bill signing of his “Texas-sized” $18 billion property reduction plan, SB 2 (88th 2nd Special Session) at the Atrium Center in New Caney, Texas on Wednesday August 9, 2023. Other speakers at the bill signing included Governor Greg Abbott (R-Texas), Lt. Governor Dan Patrick (R-Texas), House Speaker Dade Phelan (R-Beaumont), and Representative Morgan Meyer (R- Highland Park). Senator Bettencourt commended all the leadership.

“Governor Abbott just signed the biggest state property tax cut in the world! It’s a fabulous 18 billion dollar tax reduction bill and every Texan will see HUGE savings on their fall tax bill,” stated Senator Bettencourt. “It’s on the November 7th ballot as proposition 4 so, let the people vote!” He added.

Senator Bettencourt’s SB 2, known as the “Texas Two-Step,” will increase the homestead exemption to $100,000 for all 5.72 million Texas homestead owners. Texas homestead owners that are over-65 or disabled will have their frozen tax bill unfrozen and then recalculated with the increased homestead exemption plus the additional 23.8% M&O property tax rate compression and then refrozen at the lower amount. These eye-popping savings are retroactive and will apply to 2023 ISD tax bills.

While the Texas Senate and House overwhelmingly passed SB 2 it’s the Texas voters who will have the final approval of this historic property tax relief package on November 7th, 2023. The Secretary of State’s Office assigned proposition numbers to all the Constitutional amendments that will be on the ballot. HJR 2, by Rep. Will Metcalf (R-Conroe) will be Proposition 4 on the November 7th ballot.

Proposition 4 contains the following:

  • Increase Texas homestead exemption to $100k on 5.72 million Texas homeowner’s ISD property tax bills, effective on this year’s property tax bill.
  • Approve a “catch-up” for over-65 and disabled for the $15k homestead exemption increase adjustment from May 2022 state-wide election.
  • Approve non-homesteaded real property valued at $5 million and under will receive a 20% circuit- breaker on appraised value increases as a 3-year pilot project. The constitutional circuit breaker will sunset Dec. 31, 2026.
  • Three county citizens will be elected county-wide to each County Appraisal Districts (CAD board) of directors in non-partisan positions. The CAD board of directors will now select Appraisal Review Board (ARB) members, in each county of 75k population or greater.
  • Make sure property tax relief does not count towards constitutional spending limit.

“This is an enormous deal for Texas homestead homeowners over a lifetime! Regular homeowner ISD tax bills will be cut by $1,312.67 by year two. Multiply that by 30 years and that’s a total of $39,369.10 in property tax cuts. For over-65 and disabled homeowners by year two will receive $1,482.67 multiplied by 15 years is a total of $22,240.05 These are life-changing savings!” Concluded Senator Bettencourt.

See chart below for expected SB 2 savings for 5.72 Million Homeowners on their ISD Tax Bill.

Average Homestead Relief from SB 2 & HJR 2, 88th Legislature, 2nd Called Special
Senate Bill 2 Plan Policy Year 1 Relief Year 2 Relief
1 GAA SCP Decrease ($0.0939 cut in 2024, $0.1098 cut in 2025) $273.51 $319.52
2 MCR Reduction (10.7 cent cut in 2023-2024 school year, continuing) $311.37 $311.37
3 +$60k HE $681.42 $681.42
4 +$15k tax ceiling adjustment for May 2022 relief $170.36 $170.36
Avg. Regular Homeowner Total Savings (1+2+3) $1,266.30 $1,312.31
Avg. Over 65/Disabled Homeowner Total Savings (1+2+3+4) $1,436.66 $1,482.67
Avg. Homeowner Property Tax Savings $1,373.00
Note 1: Calculations assume savings on a $331,000 homestead, and a total school district taxing rate of $1.1357
*Prepared by the Office of Senator Paul Bettencourt