Texas voters have recently approved significant property tax breaks aimed at homeowners and businesses. These new measures are expected to alleviate financial burdens on property owners statewide.
Homestead Exemption Increases
The recently approved constitutional amendment raises the state’s homestead exemption from $100,000 to $140,000. This change allows a larger portion of a home’s value to remain untaxed for public school funding, directly benefitting homeowners.
Impact on Homeowners
- Homeowners will see hundreds of dollars shaved off their property tax bills.
- Those aged 65 and older, or individuals with disabilities, are expected to receive even greater tax cuts.
State Senator Paul Bettencourt emphasized that this recognition of the need for property tax cuts is critical for keeping Texans in their homes. According to calculations, a typical Texas home valued at $302,000 would have saved approximately $490 on school property taxes under the new exemption last year.
Tax Breaks for Businesses
In addition to benefits for homeowners, businesses will also receive tax relief. An amendment is set to exempt up to $125,000 of business inventory from taxation by various local taxing entities.
Financial Implications for Jurisdictions
- School districts will be compensated for the loss of inventory tax revenue.
- Cities and counties may need to adjust tax rates or budgets to accommodate these changes.
Experts warn that the state’s ambitious property tax relief plan, which allocates $51 billion over the next two years, could strain Texas’s finances if economic conditions shift. As these tax breaks become embedded in the constitution, lawmakers will have to consider cuts to other budget areas if necessary.
The approval of these tax breaks reflects a broader effort to provide financial relief to both homeowners and business owners across Texas. This development marks a significant step in addressing the high property tax rates that have long burdened residents.
