The state’s lead budget writers revealed their first draft of the budget proposal, which indicates $16,799,557 as a “Property Tax Program” and is expected to expire on August 31, 2024. In addition, government officials say that $3 billion of this money would be used to directly increase the family property exemption from $40,000 to $70,000.
The Property Tax Relief was one of the campaign promises by Texas Republicans before the November election. Sen. Joan Huffman, a Republican from Houston, has first filed the bill; however, the proponent’s name can change when the session progresses, and negotiations begin in Austin. Lieutenant Governor Dan Patrick affirmed on Tuesday that property tax relief would be the top agenda for the legislative bodies in 2023.
Patrick said in his inaugural speech, “In the budget that we will release this week, Texas Senate will raise your homestead exemption to $70,000, which will save you thousands of dollars over the lifetime of your home.”
Other plans to be raised during the legislative bodies include changes in business tax exemption to help small business owners and a property tax bill that could modify the school district tax rates.
Meanwhile, House of Representatives Speaker Dade Phelan, also a Republican, did not specifically state whether he supports the Senate’s proposal. It should be noted that Texas has higher property taxes compared to other states like California.