Texas Senate Passes Property Tax Relief Bills Joint Authored by Senator “Chuy” Hinojosa

The Texas Senate passed Senate Bill (SB) 4 and Senate Joint Resolution (SJR) 2, which I joint-authored with Senator Paul Bettencourt. These bills are once again priorities for Lt. Governor Dan Patrick and Governor Greg Abbott, who has declared property tax relief as an Emergency Item. This allows the legislature to act on this issue before March 14, the 60th day of the session.

SB 4 and SJR 2 would provide more property tax relief to Texas homeowners by raising the homestead exemption to $140,000. This increase is expected to save the average homeowner approximately $500 annually. It is also estimated that 49% of homeowners across the state will not have a school tax bill if the homestead exemption is increased to this amount.

SB 4 works in conjunction with Senate Bill 1, the General Appropriations Act, authored by Senator Joan Huffman, which reduces school district tax rates by 6.8 cents. This reduction will yield an additional savings of $133.13 for the average homestead property owner. The bill also safeguards the exemptions for homeowners over 65 and for disabled individuals, which means they get an additional $10,000 increase to their homestead exemption. Importantly, it includes a hold-harmless provision, ensuring the state will fully cover any funding shortfalls for Independent School Districts resulting from the increased exemption. There were 5.5 million students enrolled during the 2023-24 school year.

In 2015, I supported legislation that approved an increase of the residence homestead exemption from $15,000 to $25,000. This was followed in 2021 by another increase, approved by voters, raising the exemption to $40,000. In 2023, the exemption was further increased to $100,000.

If passed, SJR 2 will allow voters to raise the residence homestead exemption to $140,000. Both bills, SB 4 and SJR 2 are now under consideration in the Texas House.

Following the Senate’s passage of these bills, Senator Juan “Chuy” Hinojosa stated:

“I was honored to joint-author these important bills and appreciate Senator Bettencourt’s efforts and Lt. Governor Patrick’s leadership in raising the homestead exemption to $140,000. Despite the significant property tax relief we have provided in the past two sessions, rising property taxes remain a top concern for many Texans. High property taxes burden homeowners and businesses, making it harder for families to afford their homes and hindering economic growth. These bills, if passed by the Texas House and approved by voters, will continue to deliver much-needed tax relief and allow homeowners to keep more money in their pockets.”