The Texas House of Representatives unanimously passed a bill this week to raise the state’s Homestead Exemption another $40,000 up to $140,000. The amount of an exemption is subtracted from the value of the home, so the owner pays property tax on a smaller amount, thus paying less tax. As Texas Public Radio and Texas Tribune reports, it’s the latest move by lawmakers aimed at lowering Texans’ property taxes. According to state figures, the legislation will cost the state an estimated $2.7 billion through August 2027.
Like the Homestead Exemption increase that passed in the previous 2023 Texas Legislative Session, this measure also includes a so-called “hold harmless” provision. That ensures school districts don’t lose funding due to decreased tax revenue.
But before the final passage, Texas Representative Mike Olcott, R-Aledo, introduced an amendment to raise the exemption even more, up to $160,000, using money from the state’s $24-billion budget surplus. “My amendment will allow for a greater amount of that money, that $24 billion dollars, to be used for property tax relief, and I think we need to support this.” The House did not support Olcott’s amendment. The measure now heads back to the Senate for that chamber’s approval.
