BY HANNAH NORTON
This November, voters across Texas will be asked to approve larger property tax breaks for homeowners and businesses. Gov. Greg Abbott signed the three proposals into law June 16. But because the tax cuts would be enshrined in the state Constitution, voters will have the inal say. If voters approve the constitutional amendments Nov. 4, homeowners will see increased exemptions from school district taxes, with the largest reduction for seniors and people with disabilities. Business owners would also see a reduction in the taxes paid on their inventory. “These exemptions, once you vote for them in November, will be there... for life,” Sen. Paul Bettencourt, R-Houston, said June 16. Voters will have nal say on property tax cuts
Zooming in
How it works
In a June 11 interview, Abbott said that because the state does not levy property taxes, it also cannot make direct tax cuts. “I know Texans are frustrated about what’s going on. ... Local jurisdictions, in my opinion, have imposed too much property taxes on our fellow Texans,” he said June 11. To limit homeowners’ tax bills, Abbott has suggested requiring entities to receive two-thirds approval from local voters before they can raise tax rates.
The proposed tax cuts will appear on the Nov. 4 ballot as state propositions.
Senate Bill 4
By Sen. Paul Bettencourt, R-Houston, would: • Raise the statewide tax exemption for all homeowners from $100,000 to $140,000 • Apply only to taxes levied by public schools • Save the average homeowner about $484 annually
Senate Bill 23
By Sen. Paul Bettencourt, R-Houston, would: • Give homeowners who are over 65 years old or have a disability a $200,000 exemption • Apply only to taxes levied by public schools • Save seniors and people with disabilities about $950 annually
Texas’ tax system
The state of Texas does not charge property taxes. Homeowners are taxed by over 3,700 local governments, including:
House Bill 9
By Rep. Morgan Meyer, R-University Park, would: • Exempt up to $125,000 of businesses’ inventory from taxation, up from $2,500 today • Save the average small-business owner about $2,500 annually
School districts
Cities and counties
Texas would spend:
SOURCES: TEXAS LEGISLATURE ONLINE, SEN. PAUL BETTENCOURT’S OFFICECOMMUNITY IMPACT
$10B to ensure school districts do not lose revenue as a result of the proposed tax breaks
About 37% of Texans rent their homes, accord- ing to the progressive think tank Every Texan. Some lawmakers said they were concerned that the proposed tax cuts would not benet renters. “A lot of renters indirectly pay a property tax by their monthly payments,” Rep. Armando Walle, DHouston, said on the House oor May 20. “We need to continue to look at renters, those folks that are working shift jobs or may not have enough yet to save up for a home.”
Hospital districts
Junior college districts
$51B, or 15% of the 2026-27 budget , to maintain existing property tax relief and fund the expanded exemptions
SOURCE: TEXAS COMPTROLLER OF PUBLIC ACCOUNTS COMMUNITY IMPACT
Municipal utility districts
SOURCE: TEXAS LEGISLATURE ONLINECOMMUNITY IMPACT
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