Texas lawmakers promise property tax relief
Texans pay some of the highest property taxes in the nation because there's no state income tax. But lawmakers have been working to lower the costs. FOX 4's Casey Stegall has an update on their efforts.
The Brief
- State lawmakers passed bills to raise the homestead exemption from $100,000 to $140,000 or $150,000 for seniors. Voters need to approve that in November.
- The Texas House also passed a budget that includes $51 billion in property tax reductions.
- Some lawmakers believe the relief doesn't go far enough.
DALLAS - If you haven’t received your property tax notice, you will soon. County appraisal districts are in the process of mailing them out.
At the same time, state lawmakers are working to provide some relief.
Texas Property Tax Relief
The Lone Star State may be a great place to call home, but it comes with a price tag. Texans pay some of the highest property taxes in the nation.
"We don’t have other tax levers or other structures to tax other entities, whether they’re businesses or things of that nature from the state level. So, property taxes are what the state focuses on," said Matthew Houston from the UNT Dallas School of Business.
Legislators have been working to change that.
Senate Bill 4 and Senate Joint Resolution 2 were passed back in February, which would raise the homestead exemption from $100,000 to $140,000 or $150,000 for seniors.
Voters must approve it through a proposition on the upcoming November ballot.
Last week, the Texas House also passed a budget that includes $51 billion in property tax reductions.
The bulk of that is dedicated to maintaining existing cuts from previous years, with $6.5 billion in new allotments.
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Texas homeowners must now verify homestead exemptions every 5 years — or risk losing it
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What they're saying:
Some lawmakers believe the cuts don’t go far enough.
"I meet so many people that are struggling every year to make that annual payment," said State Rep. Mike Olcott, a Republican from Fort Worth. "I cannot go back in good conscience to my constituents and tell them that out of $24 billion in surplus money that belongs to them, I can only come back and support a budget that is only going to return $6.5 billion."
Dig deeper:
Much of the property tax relief hinges on Texas having a surplus of funds.
It’s a risky move, according to Houston, because you can’t guarantee it’ll be there down the road.
"Surplus, by definition, is abundance, right? And so typically, that abundance happens as a result of responsible decision making, particularly in the business or the legislative session. And so, what we don’t want to do is rely on gifts or treats to provide necessity for the future," he said.
What's next:
If the latest homestead exemption hike is approved by voters in the fall, property owners are expected to see about $363 in average savings on their annual tax bills.
The Source: The information in this story comes from the Texas Legislature and an interview with Matthew Houston from the UNT Dallas School of Business.
