Senator Paul Bettencourt, representing Houston, along with the Senate Committee on Local Government, has successfully advanced Senate Bill 4 and Senate Joint Resolution 2. These bills are priority measures of Lieutenant Governor Dan Patrick and have received unanimous support in committee. The proposed legislation aims to increase the homestead exemption from $100,000 to $140,000.
Senator Bettencourt remarked on the impact of these bills: “By following up on the largest, grandest, hugest property tax reduction in American History, $22.7 Billion to be exact, SB 4 and SJR 2 provide more meaningful reduction to Texas homeowners by raising the Homestead Exemption to $140k. This will be providing an estimated $500 savings to the average homeowner annually.”
The senator highlighted testimony from Charles Scoma of the Silver-Haired Legislature as influential. He noted that "80% of Texas Seniors only have $36k of disposable income," emphasizing a moral obligation to support seniors in maintaining their homes.
Senate Bill 4 is designed to complement Senate Bill 1, authored by Senator Joan Huffman. This bill focuses on school district tax rate compression and is expected to deliver additional savings for property owners. Protections remain in place for over-65 and disabled homestead exemption holders.
With these measures advancing through the committee stage, attention now turns to the Texas House where another vote will determine if this record increase in homestead exemption will proceed further. Senator Bettencourt projects significant savings: “My office estimated $363.44 in annual school property tax savings for the average Texas homestead based on a statewide ISD average tax rate of $0.9086... When combined with the savings from SB 4 and SJR 2 the total estimated annual tax reduction for Texas homeowners amounts to nearly $496.57!”
Dixon Holman from Texas Realtors stressed that such financial relief could greatly influence home purchasing decisions: “Clearly, SB 4 is a BIG deal for Texas homeowners.” He anticipates strong legislative and voter approval.
An important component of Senate Bill 4 is its hold-harmless provision ensuring state coverage for any ISD funding shortfalls resulting from increased exemptions. Following passage by the Senate Floor, both SB4 and SJR 2 will proceed to consideration by the House.
