Homestead exemption of $ 140,000 passes Senate, on to House

AUSTIN — Sen. Paul Bettencourt (R-Houston) and the Senate Committee on Local Government unanimously passed Senate Bill 4 and Senate Joint Resolution 2, legislative priority bills of Lt. Gov. Dan Patrick.

Both measures are expected to pass with bipartisan support on the Senate floor, raising the homestead exemption from $100,000 to a record $140,000.

“ By following up on the largest, grandest, hugest property tax reduction in American history, $22.7 billion to be exact, SB 4 and SJR 2 provide more meaningful reduction to Texas homeowners by raising the Homestead Exemption to $140,000,” Bettencourt said. “This will be providing an estimated $500 savings to the average homeowner annually.”

Senate Bill 4 works in conjunction with Senate Bill 1, the General Appropriations Act, which provides 6.8 pennies of school district tax rate compression. This compression will result in an additional $133.13 in savings for the average homestead property owner. Senate Bill 4 maintains its protections for over-65 and disabled homestead exemption owners.

With the passage of SB 4 and SJR 2, the Texas House will have the opportunity to vote on another increase of the homestead exemption to a record $140,000 and beat the 83% approval rate in 2023.

“ The testimony of Charles Scoma of the Texas Silver Haired Legislature was very compelling. 80% of Texas seniors only have $ 36,000 of disposable income; SB 4 really makes a difference,” he said. “ We have a moral obligation to keep seniors in their home.”

Dixon Holman from the Texas Realtors emphasized savings of $500 can have a very significant impact on deciding whether to purchase a home, stating it’s cheaper to rent then it is to buy right now.

“ When combined with the savings from SB 4 and SJR 2 the total estimated annual tax reduction for Texas homeowners amounts to nearly $500,” the senator said.

Senate Bill 4 includes a hold-harmless provision, guaranteeing that the state will fully cover any ISD funding shortfalls resulting from the exemption increase. Once the Senate floor passes SB4 and SJR 2, the measures will move onto the House.

“Clearly, SB 4 is a big deal for Texas homeowners,’ Bettencourt said, adding, “I look forward to seeing the overwhelming approval from the Texas Legislature and then the Texas voters. Tax relief is on the way.”