The Texas Senate has introduced a $16.5 billion property tax cut package, which is considered to be the largest in state history. This package includes three bills that aim to provide property tax relief to Texas homeowners and business owners. Senate Bill 3 proposes to increase the homestead exemption by 75% up to $70,000 and triple the senior property tax exemption for homeowners who are 65 years of age or older to $30,000. Senate Bill 4 aims to buy down local school property taxes by an additional $5.83 billion, in addition to the rate compression from 2019’s education reform bill, to reduce school property tax rates by a total of $10.68 billion. Senate Bill 5 is focused on business taxes, increasing exemptions for the tax on business personal property to 20% and reducing inventory taxes by 20%, leading to $1.5 billion in tax reductions for Texas business owners.
The Senate’s plan for tax cuts is focused on exemptions because they are considered to be the best way to provide lasting cuts to taxpayers. The combination of the state’s cap on local government spending growth, record revenue projections, and a record budget surplus is driving the size of the relief package. The state will cover any lost local revenue. The proposed package could help Texans save money, especially senior homeowners who would qualify for an exemption of $100,000.
What do you think about the Texas Senate’s $16.5 billion property tax cut package? Do you believe this will provide substantial relief to Texas homeowners and business owners?
link to original article: https://senate.texas.gov/news.php?id=20230314a&lang=en