SB 2/ HJR 2
- Increases the homestead exemption from $40,000 to $100,000 for homeowners under the age of 65 and $110,000 for homeowners over the age of 65.
- Provides 10.7 cents of additional ISD tax rate compression, a 23.8% savings, to reduce the school property tax rate for homeowners & business properties.
- Implements a 3-year pilot program for non-homesteaded properties valued at $5 million & under (residential & commercial) to limit appraised value increases.
- Creates three positions for citizens to serve on their local appraisal board in counties with a population above 75,000. This will help increase citizen participation and oversight of the appraisal process.
- Increases the franchise tax exemption from $1.235 million to $2.47 million, which will remove 67,000 small to medium-sized businesses from paying the franchise tax. This plan helps our mom-and-pop businesses keep their hard-earned money.
After Governor Abbott signs these bills, the property tax relief plan will be on the ballot as a constitutional amendment this November, just like past homestead exemption increases. If the constitutional amendment passes, homeowners will see the homestead exemption and school tax rate reduction in effect for the next round of property taxes due for the 2023 tax year, which for homeowners is typically paid by Jan 31, 2024.