Senator Paul Bettencourt (R-Houston) in a press release announced the Senate’s $16.5 billion in Property Tax Relief bills heard in the Senate Finance Committee on March 15th, 2023. An overview can be found below:
SB 3 was signed on by all 31 Senators and would raise the Homestead Exemption 75% to $70,000 for 5.72 million homeowners. SB 3 will also implement the voter-approved Homestead Exemption increase from $25,000 to $40,000 for all over-65 and disabled homesteads from Propositions 1 and 2 in May of 2022.
SB 4 will provide an additional $5.38 billion in ISD tax rate compression and will reduce recapture by expanding the school finance band to 20%. Rate compression benefits all taxpayers and reduces recapture by funding additional Maximum Compressed Rate compression in School Finance by the state continuing to pay for property tax relief above a 2.5% rollback threshold.
SB 5 will create an Inventory Tax Credit totaling $1.05 billion. First, SB 5 will raise the Business Personal Property Exemption to $25,000 from $2,500, saving $450 million. It will also cut business compliance costs.