Today, we will tell you about the Texas Homestead Exemption Bill, property taxes, and school funding and what the Texas Homestead Exemption Bill would mean for property taxes and school funding. Let’s start:
Texas Homestead Exemption Bill, property taxes, and school funding
The plan is currently in the hands of members of the Texas House to decide what to do with the new plan to cut property taxes. The senator who authored the plan claims it is the biggest exemption increase in the state’s history. Although it could save taxpayers hundreds of dollars off their tax bills for property, that money is typically used for school funding.
Homeowners have already seen a tax reduction in 2023. It is now the Texas Senate is taking it an additional step this week when it approves an amendment to raise the exemption on homesteads between $100,000-$140,000, which is a benefit for a lot of homeowners.
State Senator. Paul Bettencourt, the creator of the bill, claimed that it would cost homeowners about $360 per year, and up to 9 of 10 seniors in Texas would not pay any property taxes.
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“It’s going to particularly help people of lesser means who have homes that are less valuable than some of the big houses. I voted for it because, in reality, in many instances, home prices may have tripled over the past couple of decades,” said State Senator. Nathan Johnson, D-Dallas County.
Property taxes are among the three primary sources of funds that are used to fund Texas’s public school system. The legislature plans to make use of sales tax from the state and other revenue sources to cover the expenses for public schools.
The Senate’s plan calls for the provision of around $3 billion to help cover the revenue loss that is expected to be lost to school districts from the surplus of $24 billion. However, Johnson is still concerned regarding school funding.
“I do not ever want to see a school district have to not hire a teacher or fire a teacher because we’re giving people property tax relief this session,” Johnson declared.
It’s now dependent on lawmakers in the Texas House to approve the bill, and if signed by the governor, the public will need to vote on the amendments during the November election before it goes into force.
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