The Texas House on Tuesday approved a package of property tax relief bills negotiated with the Senate, including a major increase to the state’s homestead exemption—but not without some pushback from lawmakers who say the relief doesn’t go far enough.
Senate Bill 4, which raises the homestead exemption for Texas homeowners from $100,000 to $140,000, passed unanimously. The legislation was carried in the House by State Rep. Morgan Meyer (R–Dallas), who chairs the tax-writing Ways and Means Committee.
During debate, freshman State Rep. Mike Olcott (R–Aledo) offered an amendment to increase the homestead exemption even further—from $140,000 to $160,000—arguing that the state’s massive $24 billion surplus warranted a larger return to taxpayers.
“I refuse to go back to my district and say the best we can do is $6.5 billion in newly appropriated money from our $24 billion surplus,” said Olcott. “My amendment will allow for a greater amount of that money to be used for property tax relief.”
Meyer urged members to vote against the change, citing a tightly negotiated deal with the Senate and warning that increasing the exemption would require cuts to other parts of the state budget.
The amendment was ultimately tabled by a 96-35 vote.
In addition to SB 4, the House also passed Senate Bill 23, which increases the homestead exemption for elderly or disabled homeowners to $200,000. That bill, too, passed unanimously.
The legislative package also includes a measure to raise the business personal property tax exemption from $2,500 to $125,000—part of the compromise announced earlier this month between House and Senate leaders.
The homestead exemption increases must still be approved by voters in the November election.
The plan, when accounting for new relief, falls short of the $10 billion goal Gov. Greg Abbott laid out in his State of the State address earlier this year.
