Senator Paul Bettencourt’s Huge property tax reduction bill is ceremonially signed into law! Voters have final approval on Proposition 4, the record $18 billion property tax bill on November 7, 2023 

Austin – Senator Paul Bettencourt (R-Houston) spoke at the ceremonial bill signing of his “Texas sized” $18 billion property reduction plan, SB 2 (88th 2nd Special Session) at the Atrium Center in New  Caney, Texas on Wednesday August 9, 2023. Other speakers at the bill signing included Governor Greg  Abbott (R-Texas), Lt. Governor Dan Patrick (R-Texas), House Speaker Dade Phelan (R-Beaumont), and  Representative Morgan Meyer (R- Highland Park). Senator Bettencourt commended all the leadership. 

“Governor Abbott just signed the biggest state property tax cut in the world! It’s a fabulous 18  billion dollar tax reduction bill and every Texan will see HUGE savings on their fall tax bill,” stated  Senator Bettencourt. “It’s on the November 7th ballot as proposition 4 so, let the people vote!” He  added. 

Senator Bettencourt’s SB 2, known as the “Texas Two-Step,” will increase the homestead exemption to  $100,000 for all 5.72 million Texas homestead owners. Texas homestead owners that are over-65 or  disabled will have their frozen tax bill unfrozen and then recalculated with the increased homestead  exemption plus the additional 23.8% M&O property tax rate compression and then refrozen at the lower  amount. These eye-popping savings are retroactive and will apply to 2023 ISD tax bills. 

While the Texas Senate and House overwhelmingly passed SB 2 it’s the Texas voters who will have  the final approval of this historic property tax relief package on November 7th, 2023. The Secretary of  State’s Office assigned proposition numbers to all the Constitutional amendments that will be on the  ballot. HJR 2, by Rep. Will Metcalf (R-Conroe) will be Proposition 4 on the November 7th ballot. 

Proposition 4 contains the following: 

• Increase Texas homestead exemption to $100k on 5.72 million Texas homeowner’s ISD property tax bills,  effective on this year’s property tax bill. 
• Approve a “catch-up” for over-65 and disabled for the $15k homestead exemption increase adjustment from  May 2022 state-wide election. 
• Approve non-homesteaded real property valued at $5 million and under will receive a 20% circuit- breaker  on appraised value increases as a 3-year pilot project. The constitutional circuit breaker will sunset Dec. 31,  2026. 
• Three county citizens will be elected county-wide to each County Appraisal Districts (CAD board) of  directors in non-partisan positions. The CAD board of directors will now select Appraisal Review Board  (ARB) members, in each county of 75k population or greater. 
• Make sure property tax relief does not count towards constitutional spending limit. 

“This is an enormous deal for Texas homestead homeowners over a lifetime! Regular  homeowner ISD tax bills will be cut by $1,312.67 by year two. Multiply that by 30 years and  that’s a total of $39,369.10 in property tax cuts. For over-65 and disabled homeowners by year  two will receive $1,482.67 multiplied by 15 years is a total of $22,240.05 These are life changing savings!” Concluded Senator Bettencourt.  

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See chart below for expected SB 2 savings for 5.72 Million Homeowners on their ISD Tax Bill.