A proposed bill in Texas aims to increase the homestead exemption for school taxes from $100,000 to $140,000. This move is part of an effort to provide tax relief for homeowners in the state, who face high property tax bills. The bill has been approved by the Senate Local Government Committee and will now go to the full Senate for a vote. Lawmakers are hoping to address the issue of high property taxes, which have been a concern for homeowners and businesses in Texas. Governor Greg Abbott has made property tax cuts an “emergency item” and called for billions of dollars to be spent to continue reducing property taxes.
The proposed increase in the homestead exemption would cost the state $7.7 billion by 2030, according to estimates. In addition to the exemption increase, lawmakers also plan to send $3 billion to school districts over the next two years to help reduce tax rates. However, it should be noted that renters will not directly benefit from the homestead exemption increase as rental property owners are not eligible for the exemption.
While supporters of the bill believe that increasing the homestead exemption would provide relief for homeowners facing rising costs, some studies suggest that greater tax breaks could lead to higher home prices. The Texas House has not yet revealed its plans for property tax cuts this year, as newly elected House Speaker Dustin Burrows has not yet assigned representatives to committees. Overall, the bill represents an ongoing effort by Texas lawmakers to address the issue of high property taxes in the state, with the goal of providing relief for homeowners and businesses.
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