AUSTIN, TX – With the final passage of Senate Bill 4 (SB 4) and Senate Bill 23 (SB 23), authored by Senator Paul Bettencourt (R-Houston), Senator Bettencourt, joined by Lt. Governor Dan Patrick and members of the Texas Senate, held a press conference at the State Capitol to celebrate the bipartisan passage of this legislative milestone, now headed to Governor Greg Abbotts desk for signature. Once signed, Texans will need to vote in November 2025 election to approve the constitutional amendments tied to SB 4 and SB 23 to deliver a historic $10 billion property tax relief package.

“SB 4 and SB 23 build on the momentum of 2023’s record-breaking $22.7 billion tax cut in U.S. history with targeted exemptions that help millions of Texans, from first-time homebuyers to seniors on fixed incomes,” said Senator Bettencourt. “This is a $484/yr cut for 5.7M Texas homeowners, and a $938/yr cut for over 65 and disabled homesteads.” He adds. “Homestead exemptions aren’t red or blue they’re green that saves taxpayers real money.” Sen. Carol Alvarado.

SB 4 and SJR 2, raises the ISD homestead exemption from $100,000 to $140,000, a 40% increase, benefiting all 5.7 million Texas homesteads with an estimated $363.00 in annual savings based on a statewide ISD average tax rate of $0.9086. Paired with 6 pennies of the school M&O rate compression in SB 1, the General Appropriations Act, which delivers another $133.13 in relief, homeowners will see a average total annual savings of $484.00. The exemption is fully funded by the state with an ironclad hold- harmless provision to ensure no school district loses funding.

“In 2023, the Texas Senate delivered a tax cut of $1,266.30 for the average homeowner. When tax cuts from 2023 and 2025 are combined, homeowners will be reviewing a total tax cut of $1,762.87. Senators from both sides of the aisle understand when increased Homestead Exemption and more compression are combined, homeowners receive maximum tax relief benefit. I thank Sen. Bettencourt for his hard work in carrying SB 4 and SJR 2,” said Lt. Governor Dan Patrick.

SB 23 and SJR 85, increases the additional exemption for Texans over 65 and those with disabilities from $10,000 to $60,000. With SB 4’s 140,000 base exemption, ISD homestead exemption totals $200,000, saving 2.08 million homeowners an average of $950.87 annually. Currently, 45% of over-65 and disabled homesteads pay zero in ISD taxes thanks to prior tax relief reforms Senator Bettencourt passed in previous sessions. With SB 23 it will go to a super majority of over-65 paying zero ISD homestead taxes if constitutional amendments pass November.

“With 80% of Texas seniors living on just $36,000 a year, This helps Texans age in place,” Said Senator Jose Menendez. “Texans overwhelmingly approved homestead exemption increases in 2015, 2022, and 2023. And I expect a reward turnout by the public.” Bettencourt concluded.

Also at the Governor’s desk is HB 9, authored by Chairman Morgan Meyer, who sponsored the Senate bills by Bettencourt. HB 9 raises the Business Personal Property (BPP) exemption to $125,000, saving small business owners an average of $2,500 annually beginning in 2026. This measure complements the homestead exemptions, and will be on the November Constitutional ballot as well. Thus homeowners and businesses set to receive property tax relief.

Texans will have the final say in November when they vote on the constitutional amendments enabling both SB 4 and SB 23. If approved, these reforms will deliver ongoing property tax relief for generations to come for millions across the Lone Star State. “This is a great day for Texas” Sen. Royce West finalized.

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