SB 26 raises homestead exemption to 100K, lowers rollback rate by 30% & doubles franchise tax exemption
Austin – Senator Paul Bettencourt (R-Houston), at a press conference with Lt. Governor Dan Patrick (R-Texas) and the entire Texas Senate at his side, announced the passage of the largest property tax relief bill in Texas history. Senate Bill 26 & Senate Joint Resolution 2, authored by Senator Bettencourt, passed out of the Texas Senate unanimously with bipartisan support 30-0. “I want to thank the members of the Senate for continuing to support good public policy, a combination of $12.7 Billion of ISD tax rate compression of 21 pennies, $5.3 Billion into a $100,000 Homestead Exemption, lowering the rollback rate 30%, plus doubling the franchise tax exemption!” Stated Senator Bettencourt. “This record $18 Billion dollar Senate Plan is a Win-Win-Win for Homeowners & business owners, and all Texas taxpayers plus School Districts would receive $642 Million for homestead debt payments!” Senator Bettencourt added.
Under SB 26, an “eye-popping” $5.3 Billion dollars will go towards increasing the Homestead Exemption to $100,000 for all 5.72 million Texas homestead owners. Homestead owners can expect to save $1270.72 the first year and $1,316.73 the second year. While over-65 and disabled homestead owners can expect to save $1,441.08 the first year, and up to $1,487.09 the second year. See the chart below.
SB 26 also lowers the school ISD rollback rate 30% from 2.5% to 1.75%, lowering local property taxpayer bills by billions of dollars per year. It will also double the franchise tax exemption resulting in 67,000 Texas businesses no longer paying a franchise tax. Finally, SB 26 eliminates a nuisance tax for 1.7 million taxpayers filing no revenue franchise tax forms, saving businesses both time and money.
“It takes determination, it takes courage, it takes political will to do the right thing and I believe that the reason you have us all standing here before you is because this is the right thing for Texans,” stated Senator José Menéndez (D- San Antonio). “I want to thank the Texas House for bringing the Senate together, but enough is enough,” said Senator John Whitmire (D-Houston), Dean of the Senate. “We’ve got to come back together and support property tax reduction.”
Senator Donna Campbell (R-New Braunfels) quipped, “We have to get this done as there’s not another Texas to move to!” SB 26 now waits for the Texas House. Pending its passage in the House and signature by Governor Abbott, it will be put to the voters on November 7th, 2023. “SB 26 is simply the best property tax relief package we’ve produced.” Concluded Senator Bettencourt.