Governor Signs Property Tax Compromise Into Law
From The Texas Minute
Without the typical pomp and circumstance associated with major legislation, Gov. Greg Abbott signed into law elements of the property tax relief plan passed during the second special session of 2023. The muted signing reflects just how contentious the atmosphere had become in getting the measure passed.
The elements requiring Abbott’s signature – Senate Bill 2 and Senate Bill 3 – increase the homestead exemption to $100,000 and use around $7 billion to additionally buy down—or “compress”—local school property taxes. The measures also create a three-year pilot program capping appraisals on non-homesteaded properties under $5 million in value. Lastly, the exemption from the state’s business franchise tax is increased from $1 million to $2.47 million.
The third element – a constitutional amendment – bypasses the governor and will be on the ballot on Nov. 7, 2023.
Texas GOP Chairman Matt Rinaldi has said he is “happy to see that homeowners were prioritized in the final property tax relief package thanks to the efforts of Lt. Gov. Dan Patrick and the Senate.”
Tim Hardin, the president of Texans for Fiscal Responsibility, criticized the plan’s emphasis on the homestead exemption. He noted that the compromise represented “far less than what was proposed in the regular session [and] offered no path to elimination” of the school property tax, as Abbott had originally requested.
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