Texas Border Business
Texas Border Business
In a significant move to provide relief to property owners, the Texas Senate’s Local Government Committee unanimously approved Senate Bill 4 (SB 4) on Tuesday, February 11, 2025. Authored by Senator Paul Bettencourt (R-Houston) and co-authored by 28 other senators, SB 4 proposes increasing the state’s homestead exemption from $100,000 to $140,000—the largest such exemption in Texas history.
The homestead exemption allows homeowners to reduce their primary residence’s taxable value, lowering their property tax bills. Under the current exemption of $100,000, homeowners have seen some relief, but rising property values and associated taxes have continued to strain household finances—the proposed increase to $140,000 aims to further alleviate this burden.
Senator Bettencourt emphasized the significance of this measure, stating, “SB 4 will not only cut ISD property taxes, but the state pays the bill, guaranteeing that no school district loses out on critical funding.”
The bill includes provisions to ensure that school districts, which rely heavily on property taxes for funding, receive additional state aid to offset any revenue losses resulting from the increased exemption.
If enacted, the average Texas homeowner is projected to save approximately $363 annually in property taxes. When combined with additional tax rate compression measures proposed in Senate Bill 1, the total annual savings could amount to nearly $500 per homeowner.
The bipartisan support for SB 4 underscores a collective recognition of Texas’s need for property tax relief. The bill now advances to the full Senate for consideration. If passed by the Legislature, the proposed increase in the homestead exemption will be presented to Texas voters for approval in a constitutional election, as required for amendments to the state’s constitution.
This initiative reflects ongoing efforts by Texas lawmakers to address the state’s high property tax rates and the financial challenges they pose to homeowners. By increasing the homestead exemption, the Legislature aims to provide meaningful relief while maintaining essential funding for public education.
As the bill progresses, homeowners and stakeholders across the state will closely monitor its development and potential impact on their property tax obligations.
SOURCE: The Texas State Senate – HOME
