Bills List: Property Tax Relief (Special Sessions Only)
SB 2 - Signed by the Governor. See SB 2 updates below for effective dates. Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee. Montgomery County Legislators - Author: Senator Bettencourt. Coauthors: Senators Creighton and Kolkhorst. Sponsor: Representative Metcalf. Cosponsors: Representatives Bell and Toth.
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Governor Abbott announced the second special session on June 27. This session will focus only on property tax relief with additional border security measures to be addressed in a future special session.
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Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee. SB 2 Text here.
Signed by the Governor on July 22, 2023.
Notes on effective date from Texas Legislature Online:
This Act takes effect October 12, 2023, except Sections 3.09, 3.10, 3.11, 3.12, 3.13, and Article 6 take effect immediately. Articles 2 and 3 take effect on the date of official canvass showing adoption of HJR 2, and Article 4 takes effect on January 1, 2024, but only if HJR 2 is approved by the voters. Article 5 takes effect July 1, 2024, except Sections 5.04 and 5.13 take effect October 12, 2023, but only if HJR 2 is approved by the voters. Sections 3.05, 3.08, and 3.15(b) take effect January 1, 2025, and Sections 4.02, 4.05, 4.08, 4.10, and 4.12 take effect January 1, 2027.
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Updates: Passed the Senate 06/28, House received from Senate 06/30.
SB 1 - Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
Read more about SB 1.
Montgomery County Legislators - Author: Senator Bettencourt, Coauthors: Senators Creighton and Kolkhorst.
Visit our Legislative Alerts page for the latest on special sessions called by Governor Abbott.
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Updates:
07/05: Sent to House Calendars Committee.
HB 1 - Relating to a reduction in the maximum compressed tax rate of a school district and additional state aid for certain school districts impacted by compression.
Montgomery County Legislators - Coauthor: Rep. Metcalf.
Visit our Legislative Alerts page for the latest on special sessions called by Governor Abbott.
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HB 12 - Would require any property tax increase to receive a 60% vote in order to pass the proposed rate.
Author: Representative Brian Harrison
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HB 13 - Would create an interim study committee to help political subdivisions determine how to replace the local property tax revenue with sales tax.
Author: Representative Brian Harrison
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HB 14 - Would also require increases be approved by voters, but also would provide more transparency to the system and give voters more of a voice in attempted increases.
Author: Representative Brian Harrison
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Updates:
07-05: Referred to House Ways & Means Committee.
HB 16 - Would use surplus state revenue to reduce school district maintenance and operation property taxes.
Author: Representative Briscoe Cain
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HB 17 - Would establish a cap on the spending of municipalities and counties.
Author: Representative Briscoe Cain
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HJR 7 - A constitutional amendment to abolish property taxes.
Author: Rep. Brian Harrison
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Governor Abbott called a Special Legislative Session on May 29 to address property tax relief and border security, but the House adjourned after just one day, leaving these issues hanging in the balance with no opportunity for cooperation between the House and Senate. The Senate remains in session.
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Read this June 6 Texas Scorecard article for the latest on the property tax standoff.
Updates: Senate Finance Committee hearing on 05/30. Reported favorably out of committee without amendments on 05/30. Passed the Senate on 05/30. House received from Senate on 05/30.
SB 1 (Special Session #1) - Relating to a reduction in the maximum compressed tax rate of a school district and additional state aid for certain school districts impacted by compression, an increase in the amount of certain exemptions from ad valorem taxation by a school district applicable to residence homesteads, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amounts, and the protection of school districts against the resulting loss in local revenue.
Montgomery County Legislators - Coauthor: Senator Creighton
SB 1 combines savings derived two-thirds from compression and an additional third from an increase in homestead exemptions. Compression reduces the tax rate you pay with the state paying the balance. Current homestead exemptions are at $40,000 and the Senate bill ultimately proposed to raise them to $100,000.
The combination would provide more property tax relief, according to Lt. Governor Patrick, and the exemptions are permanent, whereas compression can be changed in any future sessions. Additionally, savings from exemptions inure entirely to homeowners, whereas compression rates are spread among businesses, investors, and trusts, as well.
Once the Senate bill passed and hit the House, Speaker Phelan refused to assign it to a committee, saying it was not germane to the call. As described above, the Governor’s special session proclamation specified legislation to “cut property-tax rates solely by reducing the school district maximum compressed tax rate.” Since SB 1 combined compression and homestead exemptions, Speaker Phelan claimed that the bill was invalid for the purposes of the special session.
Visit our Legislative Alerts page for the latest on special sessions called by Governor Abbott.
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Read this June 6 Texas Scorecard article for the latest on the property tax standoff.
Updates: House Ways & Means Committee voted favorably without amendments on 05/30 (no public hearing). House passed with amendment on 05/30. Senate received from House on 06/02.
HB 1 (Special Session) - Relating to a reduction in the maximum compressed tax rate of a school district and additional state aid for certain school districts impacted by compression.
Montgomery County Legislators - Coauthors: Representatives Bell, Metcalf, & Toth.
The House passed their special session property tax relief bill, House Bill 1, and immediately adjourned the special session sine die, meaning that their special session has ended without further plans to meet. This move forces the Senate to decide whether to pass the bill without the ability to work out any differences with an absent House.
HB 1 relies solely on compression of rates to achieve relief from soaring property taxes. Although the bill is in line with Governor Abbott’s special session call to pass legislation to “cut property-tax rates solely by reducing the school district maximum compressed tax rate,” Lt. Governor Patrick objected to HB 1 on the grounds that taxpayers would lose out on significant property tax relief.
“Homeowners would lose nearly $700 a year under that plan,” the Lt. Governor said. “This is not acceptable to the Senate. Compression plus Homestead Exemption is the path for the biggest tax cut in history. All compression is not.”
The Senate remains in special session, but the likelihood of them passing HB 1 seems slim.
Visit our Legislative Alerts page for the latest on special sessions called by Governor Abbott.
Click here to view bills filed by your state legislators during the 88th Texas Legislative Session, and to look up how your legislators voted on issues important to you.
Senator Brandon Creighton (SD 4)
(512) 463-0104 (Austin Office)
(281) 292-4128 (District Office)
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Senator Paul Bettencourt (SD 7)
(512) 463-0107 (Austin Office)
(713) 464-0282 (District Office)
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Senator Lois Kolkhorst (SD 18)
(512) 463-0118 (Austin Office)
(979) 251-7888 (District Office)
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Rep. Cecil Bell (HD 3)
(512) 463-0650 (Austin office)
(281) 259-3700 (District office)
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Rep. Steve Toth (HD 15)
(512) 463-0797 (Austin office)
(346) 220-0300 (District office)
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Rep. Will Metcalf (HD 16)
(512) 463-0726 (Austin office)
(936) 539-0068 (District office)
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Rep. Ernest Bailes (HD 18)
(512) 463-0570 (Austin office)
(936) 628-6687 (District office)
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