Senator Paul Bettencourt files the Largest Property Tax Cut Bill SB 2 in the State’s History & SB 3!

Austin, TX – Senator Paul Bettencourt (R-Houston), filed as primary author the largest property tax cut bill in Texas history, SB 2, the $18 billion property tax reduction plan, as announced by Lt. Governor Dan Patrick and Speaker Dade Phelan on Monday, July 10, 2023. Senator Bettencourt’s SB 2 will increase every Texas homestead exemption to $100k, for school ISD property tax bills. Additionally, SB 2 will have $7 billion worth of MCR compression of ISD M&O property tax rate cuts of 23.8%. Non-homesteaded real property valued at $5 million and under will receive a 20% circuit-breaker on appraised value increases as a 3-year pilot project. Senator Bettencourt also filed SB 3, with Senator Tan Parker (R-Flower Mound) as joint-author that will double the franchise tax exemption resulting in an estimated 67k Texas businesses no longer paying a franchise tax. It will also eliminate a “nuisance-tax” for 1.7 million taxpayers filing the no-tax-due forms for franchise taxes, saving businesses both time and money. The constitutional amendment for SB 2 & SB 3 has been filed as a House Joint Resolution, HJR 2 by primary author Representative Will Metcalf (R-Conroe). School districts are held harmless on these changes.

“TAXPAYERS WIN! All residential and commercial real property taxpayers WIN! 5.72 million Texas homesteaders WIN! With an eye-popping average 41.5% savings of $1373 year after year!” Exclaimed Senator Bettencourt. “It’s a record property tax cut totaling $18 billion dollars,” he added.

See the chart below for the expected SB 2 savings for 5.72 Million Homeowners on their ISD tax bill:

Average Homestead Relief
Average Homestead Tax bill $3,305 Year 1 Relief Year 2 Relief % Savings
Regular Homeowner Savings $1,266.30 $1,312.31
38.31% 39.71% 39.01%
Over 65/Disabled Homeowner Savings $1,436.66 $1,482.67
43.47% 44.86% 44.17%
Average Homestead Relief 41.59%
*Prepared by the Office of Senator Paul Bettencourt

County Appraisal Districts (CAD) governance is also addressed in SB 2. For the first-time ever three county citizens will be elected county-wide to each CAD board of directors in non-partisan positions. In addition, the CAD board of directors will now select Appraisal Review Board (ARB) members, in each county of 75k population or greater. ISD’s get $642 million of I&S debt relief w/ the $100k HS exemption.

“Not only does Senate Bill 2 and 3, plus HJR 2 contain a record $18 billion dollar property tax relief, it has a huge $100k Homestead Exemption proposed Constitutional Amendment that must be voted on by the Public to get 5.72 Million Texas Homeowners an eye-popping savings of an average 41.5% cut over the next two years on their school district property tax bill.” Senator Bettencourt stated. “Plus, the public will be asked to approve the 20% non-homestead real property ‘circuit-breaker’ and a ‘catch-up’ for over-65 and disabled for the $15k homestead exemption increase adjustment from May 2022 state-wide election,” he concluded. (See the following page for detailed calculations on the average homestead property tax relief savings.)


See chart below for the expected SB 2 savings for 5.72 Million Homeowners on their ISD tax bill:

Average Homestead Relief
Senate Bill 2 Plan Policy Year 1 Relief Year 2 Relief
1 GAA SCP Decrease ($0.0939 cut in 2024, $0.1098 cut in 2025) $273.51 $319.52
2 MCR Reduction (10.7 cent cut in 2023-2024 school year, continuing) $311.37 $311.37
3 +$60k HE $681.42 $681.42
4 +$15k tax ceiling adjustment for May 2022 relief $170.36 $170.36
Regular Homeowner Total (1+2+3) $1,266.30 $1,312.31
Over 65/Disabled Homeowner Total (1+2+3+4) $1,436.66 $1,482.67
Note 1: Calculations assume savings on a $331,000 homestead, and a total school district taxing rate of $1.1357
*Prepared by the Office of Senator Paul Bettencourt