Texas lawmakers unveil plan for $15B in property tax relief that ups the homestead exemption

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Texas lawmakers unveil plan for $15B in property tax relief that ups the homestead exemption
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Texas lawmakers unveil initial plan for $15 billion in property tax relief

and public safety. The Legislature has up to $188.2 billion in general revenue at its disposal for the two-year budget cycle that begins this fall, though lawmakers could only reach that amount by voting to bypass state spending limits.

“Our conservative policy is to never spend all the money, because you never know what challenges or opportunities lie ahead,” Patrick said. The measure would build on the Legislature's move in 2021 to increase the homestead exemption from $25,000 to $40,000, cemented by a statewide vote the following year. The $15,000 hike saves the average homeowner about $175 a year in property taxes, according to state Sen. Paul Bettencourt, the Houston Republican who authored the policy.

About one-third of the $15 billion in property tax relief from Wednesday's proposals would ensure the state stays in compliance with the 2019 laws, which lowered — or"compressed" — school district tax rates, while ensuring school districts are reimbursed with state money for the lost revenue.

In a statement, Phelan said the House would"without a doubt continue to provide funding for protecting our state’s over 1,200 miles of border we share with Mexico," calling it a"necessary but unfortunate obligation." He said House lawmakers would consider legislation this session that would"punish those who are fueling" the rise in deaths from drug overdoses in Texas, along with legalizing fentanyl testing strips.

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