Austin, TX – Senate Bill 5 & and the Constitutional Amendments for SB 3, SB 4, and SB 5, launched out of the Senate Committee on Finance, Chaired by Senator Joan Huffman (R-Houston) on Monday, March 20, 2023, on a unanimous bipartisan 17-0 vote. “I believe this is unprecedented blockbuster property tax relief that the public will vote for if given the opportunity. I predict it’ll pass by 85 percent or more if it goes to the voters!” Said Senator Bettencourt, “the architect” of the Senate’s Property Tax Plan.
SB 5 will create an Inventory Tax Credit totaling $1.05 billion. First, SB 5 will raise the Business Personal Property Exemption to $25,000 from $2,500, totaling $450 million. It will also cut business compliance costs, therefore saving businesses more money. Senator Tan Parker (R- Flower Mound) commented on the work that’s gone into SB 5, saying “I would like to thank the Lieutenant Governor, Senator Bettencourt and his staff…who have been diligently working with my office to ensure the legislation before you provides meaningful tax relief for Texas businesses.”
SJR 3, SJR 4, and SJR 5 were rolled into one Constitutional Amendment that voters will vote on during the November 2023 General Election if passed. If approved by voters, the Senate’s unprecedented Property Tax Relief Plan consisting of SB 3, SB 4, and SB 5 will go into effect. SB 3 will save 5.72 million Texas homestead owners $800 per year when they see their next tax bill in the fall by raising the Homestead Exemption 75% to $70,000. “BUT WAIT, THERE’S MORE!” Added Senator Bettencourt. SB 3 will also save 2.07 million homestead owners over-65 and disabled $1,000 plus per year by tripling the over-65 and disabled exemption to $30,000, and it will add it onto the $70,000 homestead exemption for $100,000 in total for over-65 and disabled Texas homesteaders.
SB 4 will provide an additional $5.38 billion in ISD tax rate compression and will reduce recapture by expanding the school equity finance band to 20%.
“This is 16+ billion dollars of unprecedented property tax relief that will be felt by all taxpayers in the State of Texas,” concluded Senator Bettencourt. SB 5 and SJR 3 are moving to the Senate Floor for final passage along with SB 3 & SB 4.