The Senate refiled and passed a property tax plan that will provide Texans with $18 billion in property tax relief, which is $400 million more than previous plans. SB 1 and SJR 1 will give Texans the largest property tax cut in history! This plan:
- Provides homeowners with record-breaking property tax savings by raising the homestead exemption to $100,000. This will result in an average savings of $1270 for those under 65 and $1450 for those over 65.
- Compresses school taxes from 2.5% to 1.75%, resulting in a 30% permanent reduction in future tax levy increases paid by taxpayers.
- Doubles the franchise tax deduction for businesses to $2.47 million, exempting 67,000 small to medium-sized businesses from paying the franchise tax.
- The plan also removes the requirement to file a No-Tax Due franchise tax return, saving businesses time and money.
- Provides our hard-working teachers with a pay raise. Over the next two years, teachers in urban districts will receive a $2,000 pay increase, and teachers in rural districts will receive a $6,000 pay increase.