Priority Bill of Lieutenant Governor Patrick, SB 3 raises Homestead Exemption from $40,000 to $70,000
Austin, TX – Senator Paul Bettencourt (R-Houston) filed Senate Bill 3, and SJR 3, the constitutional amendment which would put to the voters of Texas the single largest ISD Property Tax Homestead Exemption increase in Texas history. SB 3 is part of Lieutenant Governor Dan Patrick’s Top 30 Priorities for the 2023 Legislative Session, and all 31 Texas Senators have signed onto them as Joint Authors.
SB 3 & SJR 3 will increase the Homestead Exemption amount from $40,000 to $70,000 if approved by the voters. The historic 75% increase in SB 3 will provide an additional $341 in savings on a Texas homeowner’s school tax bill at the statewide ISD average tax rate of $1.136* each and every year.
“SB 3 and SJR 3 will save 5.72 million Texas Homesteaders on each and every homestead property tax bill by raising the ISD Homestead property tax exemption to $70,000 from $40,000.” Remarked Senator Bettencourt, Principal Author of SB 3 and SJR 3. The bill cost estimate is $3.5 billion.
“The fact that unanimously every Senator in the Texas Senate signed on to these Lt. Governor Dan Patrick priority bills, speaks volumes about the Senate’s commitment to property tax cuts. This bill will save every homestead $341 a year on top of the existing exemption, $454, totaling $795 per year in these exemptions, driving down property tax bills.” Said Author Sen. Bettencourt.
SB 3 and SJR 3 builds on top of the property tax relief legislation from previous sessions. In the 84th Legislative Session, the Legislature passed, and voters later approved, increasing the Homestead Exemption from $15,000 to $25,000. In the 87th Legislative Session, the Legislature passed SJR 2, which was approved by voters in May of 2022 increasing the exemption to $40,000 from $25,000.
“I’m thrilled that all 31 Senators have signed on as Joint Authors to SB 3 & SJR 3! I have complete faith in the Texas Senate passing this first bill out of $15 Billion in the base budget of property tax relief, and full faith in Texas voters, who just approved increasing a Homestead Exemption by 85%, in May 2022.” Added Senator Bettencourt.
“This is one of the keys to control the growth of property tax bills and in this case actually reduce them for as long as you own a home in Texas! Just the additional $30,000 increase in a Homestead Exemption for homeowners will save them over $10,000 plus in their lifetime and nearly $25K overall.” He concluded. Senator Bettencourt will be filing additional property tax legislation.
The bill will permanently fix crediting over 65 and disabled homeowners with these exemption increases in the future. Including, retroactively, the increase of $15K from May 2022 approved by the voters. See previous Press Releases below.
Texas Taxpayers Save $8 billion on Property Taxes this year!
Inflation is up, but Homestead ISD Tax Bills are Not! Over 3.5 Million should see savings this Fall
2022 School District Rates and Levies Report
Statewide ISD average tax rate calculated by Local Government Committee staff