Texas REALTORS® Play Vital Role in $18 Billion Tax Relief Package

The Texas Legislature approved a property tax reform package totaling more than $18 billion, aimed at reducing property taxes in the state. Homeowners under 65 can expect an average annual tax savings of $1,300, while those over 65 may see an additional $150 in savings. The reform includes an increase in residence homestead exemptions to $100,000 and addresses concerns about the property tax burden on non-homestead properties, benefiting rental properties and small businesses.

The tax deal, finalized in early July, comes as a response to the persistent affordability challenges faced by Texans in recent years due to high property taxes. The reform is seen as a significant step in keeping the American dream of homeownership achievable and providing welcome savings to all property owners.

Additionally, the compromise plan will save money for 67,000 small businesses in the state by increasing the minimum threshold for franchise tax filers from $1.25 million to $2.5 million.

The process of achieving property tax reform involved extensive debate during the regular session and two special sessions of the Texas Legislature. The final version of the reform balances the interests of homeowners through the homestead exemption and other property types through compression and the "circuit breaker program."

Though the legislation has been passed and signed by the governor, it still requires a constitutional amendment, necessitating approval from voters on their November ballots.

As the state's largest professional trade association, Texas REALTORS® played a key role in advocating for property tax relief and appreciates the measures taken by lawmakers to address this issue.

Look for more details to come in the next Texas REALTOR® Magazine.