Senate Passes $4.5 Billion Tax Cut Package
Would raise state homestead exemption on school taxes

by Ryan McCrimmon

The Texas Senate on Wednesday (March 25) approved billions of dollars in property tax cuts, the biggest piece of Lt. Gov. Dan Patrick’s $4.5 billion tax relief package.

Senators gave preliminary approval to the constitutional amendment needed to approve the property tax changes.

Senate Bill 1, authored by Senate Finance Chairwoman Jane Nelson, R-Flower Mound, passed the Senate 26-5. The bill devotes about $2.4 billion to increase homestead exemptions from school property taxes.

“We need to relieve some of this burden on homeowners, and that relief needs to correspond with home values, now and into the future,” Nelson said.

Texas homeowners currently receive a $15,000 homestead exemption from school property taxes — for example, the owner of a $100,000 house would only pay school taxes on $85,000. Nelson’s bill would change the homestead exemption rate to 25 percent of the state’s median home market value, raising the exemption to about $33,000 in 2016. State Sen. Paul Bettencourt, R-Houston, a co-author of the bill, estimated the larger exemption would save homeowners more than $200 a year.

Click here to read the rest of the story.


Post a Comment