Texas House and Senate strike agreement on property tax cuts
AUSTIN (Nexstar) — As the clock expired on the 88th Legislative Session, property tax relief was left on the chopping block. Governor Greg Abbott cited the failure to pass property tax relief as a reason behind numerous vetoes. Abbott ended up calling multiple special sessions dedicated towards property tax relief.
On Monday, during the Texas House Ways and Means Committee, Chair Morgan Meyer, R-Dallas, announced there won’t be a repeat of last session.
“We have reached an agreement with the Senate as it relates to tax relief,” Meyer announced from the dais. He had just left a pair of bills increasing the homestead exemption — Senate Bill 4 and Senate Joint Resolution 2 — pending in committee. “[Senate Local Government Chair Paul Bettencourt, R-Houston will] lay out a committee substitute for Business Personal Property (BPP) exemption — we’ll be doing that at $125,000. Then we are passing these homestead exemption bills from Senator Bettencourt as is.”
Meyer’s House Bill 9 initially proposed to increase the BPP exemption to $250,000 from $2,500. Bettencourt’s updated version was sent to the Senate floor with a 9-0 vote on Monday. The BPP exemption allows homeowners to write off parts of their property if used for their business.
“It’s only Monday, but a great start to small business week at the Capitol! Proud to sponsor HB 9 & HJR 1 by House Chair @MorganMeyerTX in committee today, and passing them out on unanimous 7-0 votes!,” Bettencourt posted on X. “This helps all Texas businesses by dramatically increasing the BPP (Business Personal Property) exemption from $2,500 to $125,000— delivering ~$2,500 in avg. savings per @txbiz and my estimate, but especially for small business owners saving them their time as well as their money!”
Bettencourt has two bills currently pending in Meyer’s committee. SB 4 increases the general homestead exemption from $100,000 to $140,000, which will save Texas homeowners an average of $363.44, according to Bettencourt. Senate Bill 23 increases the additional homestead exemption for elderly and disabled homeowners from $10,000 to $60,000. Bettencourt estimates an extra $454.30 average savings for senior and disabled homeowners.
