New Efforts to Reduce Property Taxes are moving through Texas legislation – FOX 7 Austin

Austin, Texas – A new effort to reduce ownership tax is moved through the state legislative body.

A hearing of SB 4 was held on Tuesday, which could increase the release from Homestead.

SB 4 promises to provide more tax relief for homeowners and cash payments to local schools to replace a piece of revenue areas that the regions will lose.

Debate by Texas MPs on SB 4

What they say:

Texas housing owners currently have a $ 100,000 exemption of $ 100,000, which applies to their tax on their school property. SB 4 will increase the amount of release to $ 140,000. This would provide approximate savings of $ 363.44 for the average account of the home owner’s school tax.

State Senator Paul Betencort filed SB 4.

“Yes, Christmas may come early,” the Republican in Houston said during a hearing on Tuesday before the Senate Local Self -Government Committee.

Bettencourt predicts SB 4 will handle the homes at affordable prices, especially for buyers for the first time.

“Literally for the starting homes, which is for the middle home. Get what was a $ 4,100 tax account and suddenly, it’s $ 1800,” said Senator Paul Bettencurt.

For the older Texas, SB 4 can protect them from taxation from their homes.

“Many adults are now going to the homeless category,” said Cheals Skoma, who was among those who testify to the committee.

Scoma has the Texas Legislative Hair. He noted how tax values ​​would be adjusted for those over 65 and for homeowners with disabilities.

“I will say that it will probably take out 80 or 90% of the 60 and older population. They will not have ownership tax because of it,” Skoma said.

For school districts, SB 4 will be cut into a primary stream of revenue. Cutting, said State Senator Senator Mace Middleton, turns.

“It’s kind of an auxiliary benefit from the legislation that we actually maintain the school area,” said the Galveston Republican during the hearing.

The other side:

According to Dixon, Holman of the Texas Association of Brokers, a broader real estate pulsation effect can occur.

“And this will also stimulate those in their homes, if the tax burden is less, if they want to buy a more expensive home, it allows it to go to the market,” Holman said.

Some of the advantages of previous tax reductions were ultimately undercutted by new local tax increases. The tenants were reduced by previous tax cuts and again went under SB 4. This brought a proposal during a public commentary from taxpayer lawyer Shannon Halbrook.

“We think it’s time to take a step back and think if we continue to make more tax reductions or we need to think about some of the other priorities for the state, namely investing in our public education system, in our country labor in our country Our infrastructure and our healthcare system, etc. “Said Halbrook.

By the numbers:

For the legislators of the state, this is not their first reduction in Rodeo property tax.

In 2015, Homestead’s release went from $ 15,000 to $ 25,000. In 2022, it increased to $ 40,000 and this was followed by a special jump to $ 100,000.

The last plan of the Senate caused war of words between governor Greg Abbot and Lieutenant Dan Patrick. The debate under the dome of the Capitol has increased the Senate’s gap with members of the State House, which are promoting a different proposal to reduce taxes.

The three adjustments, which happened between 2015 and 2023, came with a price of $ 51 billion.

What’s next:

Senator Bettencort told the committee legislators to see legislation of this session, which will protect the new tax reduction plan by setting new tax restrictions on local authorities.

SB 4 was admitted to a unanimous vote of the committee and could go out to the Senate floor before the end of the week.

As with previous Homestead adjustments, if the SB 4 is signed by the governor, voters will have to approve it as amending the Constitution in voting on the general elections in November. The expected approval will be noted with local tax calculations that have been reduced in July.

The back -building approach has caused some confusion for district tax officers, and has also led to a judicial challenge from tax reform defenders.

The committee was warned that such a reaction could happen again.