Texas Border Business
On February 13, 2025, the Texas Senate unanimously approved Senate Bill 4 (SB 4) and Senate Joint Resolution 2 (SJR 2), introducing a historic $22.7 billion property tax relief package to reduce homeowners’ financial burden. Authored by Senator Paul Bettencourt (R-Houston) and championed by Lieutenant Governor Dan Patrick, these measures propose increasing the state’s homestead exemption for school district property taxes from $100,000 to $140,000, with an elevated exemption of $150,000 for senior citizens. This adjustment is projected to save the average Texas homeowner approximately $363 annually, with total savings reaching nearly $500 combined with additional tax rate compression outlined in the Senate’s proposed budget.
The legislation includes a hold-harmless provision, ensuring that the state will fully compensate school districts for any revenue losses resulting from the increased homestead exemption. This safeguards public education funding.
SB 4 and SJR 2 have passed the Senate and are now advancing to the Texas House of Representatives, where they are expected to receive broad bipartisan support. If the House approves these measures, SJR 2 will place a constitutional amendment on the November 2025 ballot, allowing Texas voters to decide whether topermanently enact the increased homestead exemption.
This legislative effort builds upon previous tax relief measures, including the significant $22.7 billion property tax reduction passed in 2023, which raised the homestead exemption to $100,000 and was approved by 83% of Texas voters. SB 4 aims to alleviate school property taxes further and provide long-term relief for Texas homeowners.
As the bill progresses, Texans are encouraged to stay informed and participate in the upcoming electoral process to impact the state’s property tax policies directly.
Source: The Texas State Senate – HOME
