On Thursday, the Texas Senate passed Senate Bill 4 (SB 4), the Senate’s initially proposed property tax relief legislation, which raises the homestead exemption for school property taxes.

SB 4, along with it’s accompanying constitutional amendment SJR 2, will utilize roughly $3 billion dollars of the State’s $24 billion surplus, currently appropriated in the Senate’s proposed budget (SB 1) to raise the standard homestead exemption from $100,000 to $140,000.

The Senate suspended the rules to take up and consider SB 4, and passed it unanimously by a 30-0 vote, sending the bill over to the Texas House.

While Texans for Fiscal Responsibility supports property tax relief for Texas homeowners, and recommended a reluctant and cautious “yes/amend” on SB 4, we also understand that relief efforts like the homestead exemption tend to only provide temporary relief, if any, and shifts the tax burden to other taxpayers. 

We encourage the Legislature to take up Gov. Greg Abbott’s emergency legislative priority and expand relief through tax rate compression (also known as buy-down), which provides longer term relief to all property owners, as well as provide most of the State’s $24 billion surplus (over-collected taxes) back to taxpayers.

That, in conjunction with other critical reforms such as requiring voter approval for any new property taxes, reigning in state and local government spending, and freezing school property taxes entirely, will help put Texas on a pathway to property tax elimination, so Texas families can truly own their property.

SB 4 now goes to the Texas House, which has yet to hold one committee hearing or pass any priority legislation. It remains to be seen if the Texas House will counter the Senate’s focus on the homestead exemption, with legislation prioritizing the more effective and sustainable relief through rate compression and spending limits.

Taxpayers should immediately contact their elected representatives, and express their thoughts and concerns. Contact information can be found here.

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