AUSTIN — State Senator Lois W. Kolkhorst (R-Brenham) joined other state leaders for the signing of the largest property tax cut in Texas history. Governor Greg Abbott, Lieutenant Governor Dan Patrick, House Speaker Dade Phelan and a host of lawmakers gathered in New Caney with hundreds of attendees to usher in a major tax relief package for homeowners and business owners.
“I’m proud to help deliver the largest property tax saving bills in state history,” said Senator Kolkhorst. “This tax cut saves homeowners and businesses serious money by returning $18 billion to taxpayers.” exemptions will rise to $100,000, senior homeowners will be protected from being priced out of their home, the small business exemption for the Franchise Tax will double, and Texas small businesses will be protected from excessive appraisal increases,” said Governor Abbott. “None of these monumental changes could have been accomplished without the hard work of Lieutenant Governor Patrick and Speaker Phelan. We all came together to offer Texans the property tax relief they so desperately deserve, and I am proud to sign these new laws today.”
For business owners, Senate Bill 3 doubles the franchise tax exemption to $2.47 million, which means that 40% of small businesses will not pay a franchise tax.
“The signing of this The $18 billion property tax reduction passed as Senate Bill 2 and House Joint Resolution 2 of the 2nd Called Session of the 88th Legislature. The legislation increases homestead exemptions from $40,000 to $100,000 for over 5.7 million homeowners and also decreases the tax rates of public-school districts by more than 10 cents.
Homeowners 65 and older will see additional benefits through this legislation; a welcome relief for many living on fixed incomes and battling with ever-rising inflation. With SB 2, combined with Senator Kolkhorst’s Senate Joint Resolution 2 from the 2021 2ndCalled Session, school taxes for seniors will be re-frozen at a new lower level. School taxes for these senior homeowners now have the possibility of decreasing even after being frozen, but never the possibility of increasing.
“If passed by voters this fall, Texas homestead Texas-sized tax cut, the biggest property tax cut in history, is a massive victory for all 5.7 million Texas homeowners,” said Lieutenant Governor Patrick. “The combination of compression and the $100,000 homestead exemption is a powerful one-two punch that will cut school property taxes for the average priced home by $1,250 to $1,450 every year on their homesteaded property.”
The constitutional amendment will be listed as Proposition 4 on the November 7, ballot and will be added to the Texas Constitution if approved by a simple majority of Texas voters.
“We must balance the needs of government with the limits of a taxpayer’s wallet. That’s why it’s crucial to vote for Proposition 4 this November,” said Kolkhorst.