Governor Abbott Signs Largest Property Tax Cut In Texas History
Provided by Office of the Texas Governor
AUSTIN, Texas (NEWS RELEASE) - Governor Greg Abbott today ceremonially signed legislation delivering the largest property tax cut in Texas history—$18 billion—passed during Special Session #2 of the 88th Legislature in New Caney. The Governor was joined at the historic bill signing by Lieutenant Governor Dan Patrick, Speaker Dade Phelan, Senator Paul Bettencourt, Representative Morgan Meyer, and other members of the Texas Legislature.
“Today, I am signing a law that will ensure more than $18 billion in property tax cuts—the largest property tax cut in Texas history,” said Governor Abbott. “If passed by voters this fall, Texas homestead exemptions will rise to $100,000, senior homeowners will be protected from being priced out of their home, the small business exemption for the Franchise Tax will double, and Texas small businesses will be protected from excessive appraisal increases. None of these monumental changes could have been accomplished without the hard work of Lieutenant Governor Patrick and Speaker Phelan. We all came together to offer Texans the property tax relief they so desperately deserve, and I am proud to sign these new laws today.”
In his 2023 State of the State address, Governor Abbott made cutting property taxes for Texans an emergency item for the 88th Legislature. Under Senate Bill 2 and Senate Bill 3, $18 billion of Texas’ historic budget surplus will be allocated toward driving down school district property tax rates, increasing homestead exemptions for Texas homeowners, and increasing Franchise Tax exemptions and appraisal caps for small businesses.
“The signing of this Texas-sized tax cut, the biggest property tax cut in history, is a massive victory for all 5.7 million Texas homeowners,” said Lieutenant Governor Patrick. “The combination of compression and the $100,000 homestead exemption is a powerful one-two punch that will cut school property taxes for the average priced home by $1,250 to $1,450 every year on their homesteaded property.”
“As the saying goes, everything is bigger in Texas—and now that includes property tax relief,” said Speaker Phelan. “At the start of the session, state leaders set out to pass legislation that would provide relief in a way that property owners would actually see and feel. This $18 billion package—the largest in the country—will do just that. I appreciate the hard work of all House members who helped make this historic achievement possible and am grateful to our Senate counterparts for working with our chamber to get this done.”
“Governor Abbott just signed the greatest tax cut in the history of the world,” said Senator Bettencourt. “It’s a fabulous $18 billion tax reduction bill, and every Texan will see huge savings on their tax bill. It was a great joy working with the Governor, Lieutenant Governor, Speaker, House, and Representatives Meyer and Metcalf.”
“I want to thank the Governor, Lieutenant Governor, and Speaker for their leadership on this issue,” said Representative Meyer. “It was fantastic to be able to work with the Senate to deliver this historic tax relief to the state of Texas. This absolutely, unequivocally shows that we listen to our constituents.”
Senate Bill 2 (Bettencourt/Meyer) provides property tax relief through tax rate compression, an increase in the homestead exemption, and a pilot project limiting the growth in appraised values. For tax year 2023, this will save the average Texas homestead owner over $1,200. Texas homestead owners over 65 or with a disability will see over $1,400 in savings.
Senate Bill 3 (Bettencourt/Geren) law increases the Franchise Tax “no tax due” threshold to $2.47 million and removes burdensome filing requirements for those who do not owe tax.
The constitutional amendment to provide the largest property tax cut in Texas history will be added to the Texas Constitution if approved by a simple majority of Texas voters on November 7, 2023.
Copyright 2023 KCBD. All rights reserved.