Tax Relief & Reform
The 88th Legislature continued to build on conservative tax reform victories from the 86th and 87th legislative sessions by delivering Texans the biggest property tax cut in Texas history. Taxpayers across the state will benefit from reduced property taxes, increased homestead exemptions, reforms to the appraisal system, and much more.
[88(2)] House Joint Resolution 2 (Metcalf et al. | SP: Bettencourt) if approved by Texas voters would authorize the legislature to impose a cap of 20 percent in the year-over-year growth in the appraised value of any non-homestead real property, increase the homestead exemption, and otherwise enable the legislature to provide property tax relief.
[88(2)] Senate Bill 2 (Bettencourt | SP: Meyer et al.) is a landmark property tax cut bill which compresses school district maintenance and operations (M&O) tax rates by using surplus state revenue to “buy down” M&O rates. The bill also increases the homestead exemption from school district property taxes from the current $40,000 to $100,000 and creates an appraisal cap for non-homestead properties which limits year-over-year growth in the appraised value of such properties to no more than 20 percent, excluding increases in value due to certain property improvements. This appraisal cap would only be in place up until 2027 and only for properties with an appraised value of $5 million or less.
[88(2)] Senate Bill 3 (Bettencourt | SP: Geren et al.) increases the “no tax due” threshold for franchise tax purposes to $2.47 million; businesses with revenue not more than this figure in a given tax year would not owe any franchise tax and would be considered exempt from having to file a franchise tax report for any such year.
House Bill 2488 (Geren, et al. | SP: Alvarado, et al.) requires appraisal districts to justify their appraisal increase if their decision is appealed.