With voter approval on November 7th 2023, Texas homeowners and business owners could see the changes on their 2023 taxes. Texas Senate Bill 2 proposes the following:
An increase to the residential homestead exemption from $40,000 to $100,000 for all homeowners plus an additional exemption of $10,000 for those over 65 or disabled.
A temporary 20% cap on appraisal increases for non-homestead properties that are valued at $5 million or lower.
A reduction of the school property tax rate by 10.7 cents per $100 valuation for all homeowners and business properties.
Eliminates the requirement for taxable entities that do not owe any franchise taxes to file a No-Tax-Due franchise tax return.
With the proposed cut to the school property tax rate for Texas homeowners and business properties, roughly $12.6 billion of the plan’s $18 billion legislative package will be allocated to schools to support the tax rate cut.
Governor Greg Abbott has indicated he will sign the bill when it reaches his desk. The last hurdle will be for voters to approve the plan in a constitutional election to be held on November 7, 2023. The plan, once passed, will take effect in the 2023 tax year and voters would see the benefits in their 2023 property tax bills.
Not sure how this proposed legislation will impact you or your property? Give us a call and we will be happy to discuss these changes as well as other property tax planning strategies.