Sen. Paul Bettencourt explains Unprecedented $16.5 Billion Property Tax Relief Bills in Finance Today
Taxpayers save Billions with SB 3,4, & 5 – will be heard in the Senate Finance Committee
Austin – Senator Paul Bettencourt (R-Houston) will explain the Senate’s unprecedented $16.5 billion Property Tax Relief bills in the Senate Committee on Finance today, March 15th, 2023. The hearing starts at 9:00 a.m. “The Senate Property Tax Plan is eye-popping for 5.72 million Texas Homesteads by saving nearly $800 per year. All 31 Texas Senators signed onto SB 3, the SB 3 Homestead Exemption increase to $70,000, and we just tripled the over-65 and disabled Homestead Exemption to $30,000, too!” Said Senator Bettencourt. The hearing is expected to resume after the Senate Session in the afternoon.
SB 3 was signed on by all 31 Senators (as Joint Authors) and would raise the Homestead Exemption 75% to $70,000 for 5.72 million homeowners. SB 3 will also implement the voter-approved Homestead Exemption increase from $25,000 to $40,000 for all over-65 and disabled homesteads from Propositions 1 and 2 in May of 2022. “This $100,000 exemption in total, for our seniors that have paid a lifetime of taxes, saves them over $1,000 per year,” added Senator Bettencourt.
SB 4 will provide an additional $5.38 billion in ISD tax rate compression and will reduce recapture by expanding the school finance band to 20%. Rate compression benefits all taxpayers and reduces recapture by funding additional Maximum Compressed Rate (MCR) compression in School Finance by the State of Texas continuing to pay for property tax relief above a 2.5% rollback threshold.
“The locals fill the bucket, and if it is not enough, the state fills in the rest,” stated Senate Finance Chair Joan Huffman (R-Houston).
SB 5 will create an Inventory Tax Credit totaling $1.05 billion. First, SB 5 will raise the Business Personal Property Exemption to $25,000 from $2,500, saving $450 million. It will also cut business compliance costs, therefore saving businesses more money – the final element in the Senate plan.
“I’m very excited to unveil this package to help Texas businesses. Just like we are taking care of the people of Texas with regard to property tax, we need to also address the business side of the equation and I’m very proud to do that here today,” said Senator Tan Parker (R-Flower Mound) about SB 5.
On Tuesday, March 14th, Lt. Governor Dan Patrick and Senator Paul Bettencourt held a press conference on SB 3, 4, and 5 with Senator Tan Parker, Senate Finance Chair Joan Huffman, Senator Charles Perry, Senator Bob Hall, and Senator Kevin Sparks. Watch the press conference.