Property Tax Relief Plans May Benefit Homeowners and Businesses
- Author: Aubrey Sipes
- Posted: 2025-06-04
The proposed measures aim to increase tax breaks for homeowners and relieve some of the tax burden for businesses.
Why It Matters
Property taxes in Texas, which help fund schools and local government services, have caused challenges for homeowners as property values have increased. This new plan addresses those growing costs to give Texans some relief.
Similar efforts are happening in other Republican-led states, where leaders are debating ways to reduce or possibly eliminate property taxes altogether. These changes raise bigger questions about how public services would continue to be funded.
Details of the New Texas Property Tax Bill
The tax cuts were recently approved by both the Texas Senate and House. Under Senate Bill 4, the homestead exemption—which is the portion of a home’s value not subject to local school taxes—would increase.
For most homeowners, this exemption would rise from $100,000 to $140,000. For seniors and individuals with disabilities, Senate Bill 23 proposes raising the exemption to $200,000.
This means qualified homeowners with properties valued at or below these amounts wouldn't have to pay school property taxes.
Businesses also stand to benefit. The bills propose raising the exemption for business property, such as inventory and equipment, from $2,500 to $125,000, significantly reducing the taxable value of these items.
However, these bills won’t officially become law until Texans vote on them in November.
Funding and Concerns
To make this relief happen, the state plans to spend about $51 billion over the next two years, which is roughly one-quarter of its total budget.
Texas will need to reimburse school districts for the revenue they lose due to these exemptions. Cities and counties could consider adjusting their tax rates or budgets to handle potential financial gaps.
No Help for Renters
The proposals don’t include direct relief for renters, who represent about 12 million people in Texas. Many renters are considered "cost-burdened," meaning they spend at least 30% of their income on rent and utilities.
Some critics have pointed out that renters are left out of this plan entirely.
Check out: Understanding Rental Assistance: A Comprehensive Guide
What Other States Are Doing
Texas isn’t the only state working on cutting property taxes. States like Florida, Illinois, Kansas, and Pennsylvania are exploring ways to reduce or eliminate property taxes entirely.
These efforts are largely driven by rising home values, which create financial stress for homeowners—especially older Americans.
However, experts worry that removing property taxes might hurt funding for important services like education, healthcare, and emergency response.
What’s Next?
Governor Abbott is expected to sign these bills into law soon. After that, Texans will vote on the proposed changes during the elections in November.
If voters approve the measures, the new exemptions will apply for the next tax year.
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Check out: $1,000 Stimulus Payment: Easy Steps to Apply for Rental Rebates
