AUSTIN, TX – On Wednesday, the Texas House and Texas Senate both introduced their proposed appropriation bills for the 2026-2027 biennium. 

The House version, HB 1, was introduced by State Rep. Greg Bonnen (R-Friendswood), while the Senate version, SB 1, was introduced by Senate Finance Chair Joan Huffman (R-Houston). 

Both proposals include roughly $6.5 billion in new property tax relief, although the two chambers differ on how to provide it. The Senate version emphasizes raising the homestead exemption from $100,000 to $140,000 ($150,000 for seniors), with the House seeking to further compress M&O tax rates by an additional 6.8 cents.

While Texans for Fiscal Responsibility appreciates every effort to provide reprieve to taxpayers of the ever-growing property tax burden, the current proposals fall far short of Texas taxpayers expectations considering the legislature has overcollected $24 Billion in tax revenue. This sizable surplus should be returned to the taxpayers through property tax relief, not spent on growing government. The current relief proposed by both chambers constitutes returning a mere 27% of the surplus.

Last session, the Legislature provided $12.7 billion in new funds for property tax relief. While some property owners did see a property tax cut in 2023, total property tax collections still increased by roughly $650 million in 2023. In 2024, property taxes skyrocketed roughly $5.4 billion, likely wiping out any savings seen in 2023. 

This session, the Legislature once again has a historic opportunity to provide real relief and reform of the property tax system.  

Nearly seventy-eight percent of Texas Republicans want to eliminate property taxes,¹ and seventy-seven percent of general election voters agree that property taxes are too high.² 

We encourage both chambers to focus on providing the real relief and reform that Texans demand. This can only be accomplished by controlling spending increases, buying-down tax rates, and sending most of the budget surplus back to where it belongs: the wallets of Texans. 

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Texans for Fiscal Responsibility is an independent, educational non-profit organization seeking to illuminate the actions of government, educate and equip citizens to effectively advocate for pro-taxpayer and pro-family reforms, and hold lawmakers accountable for their actions.

1. Texas Secretary of State; https://results.texas-election.com/races ↩︎
2. Texans for Fiscal Responsibility; https://www.texastaxpayers.com/press-release-tfr-poll/ ↩︎

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