On August 9th, Governor Greg Abbott ceremonially signed legislation delivering the largest property tax cut in Texas history – $18 billion – passed during Special Session #2 of the 88th Legislature in New Caney. Under Senate Bill 2 and Senate Bill 3, $18 billion of Texas’ historic budget surplus will be allocated toward driving down school district property tax rates, increasing homestead exemptions for Texas homeowners, and increasing Franchise Tax exemptions and appraisal caps for small businesses.
Senate Bill 2 provides property tax relief through tax rate compression, an increase in the homestead exemption, and a pilot project limiting the growth in appraised values. For tax year 2023, this will save the average Texas homestead owner over $1,200. Texas homestead owners over 65 or with a disability will see over $1,400 in savings.
Senate Bill 3 law increases the Franchise Tax “no tax due” threshold to $2.47 million and removes burdensome filing requirements for those who do not owe tax.
The constitutional amendment to provide the largest property tax cut in Texas history will be added to the Texas Constitution if approved by a simple majority of Texas voters on November 7, 2023.
For more information, visit Governor Abbott Signs Largest Property Tax Cut In Texas History | Office of the Texas Governor | Greg Abbott
