Texas Property Tax Relief Pass House and Senate

According to many, the year 2021 has passed incredibly fast. It seems that just yesterday we were entering the second year of the pandemic. Now we are approaching the holidays and wrapping up the fiscal year. Among the events of the past quarter is the adjournment of the last special session of the Texas Legislature. Homeowners will be happy to know they’ve been successful in pushing through a pair of measures designed to provide property tax relief to Texans.

Texas Senate Bill 1 and Senate Joint Resolution 2

Passed in the special session, Senate Bill 1 and Joint Senate Resolution 2 combine to impose a constitutional amendment in the May 2022 ballot. The measure will give Texans a choice over whether to lower rates. property taxes. Joint Senate Resolution 2 specifically increases the homestead exemption by 60%, from $ 25,000 to $ 40,000. The changes also ensure that school districts will not be harmed by the property tax reduction, as the money will come directly from the state.

How does this measure affect the 2021 taxes?

As the measure has been approved by both sides of the legislature, this amendment is still considered preliminary. Currently, this measure will be not affect the 2021 property taxes, as it is still scheduled to be voted on by the public in the May 2022 election. If approved by voters, the amendment will be added to the Texas Constitution.

What Kinds of Homestead Exemptions Are Available in Texas?

  • School taxes
  • Departmental taxes
  • 65 years or older and exemptions for people with disabilities
  • Optional percentage exemptions
  • Optional exemptions for people with disabilities aged 65 or over

How can I benefit from a homestead exemption?

Speak to one of our agents for more information.

Other legislative actions

In addition to the real estate tax recovery, lawmakers also carried out several other actions during the last session of 2021:

Redistribution maps

Since the population of Texas has grown dramatically over the past decade, the redistribution process has required substantial adjustments. In order to reflect population growth / decline and further changes in the economy, constituency boundaries are redrawn every ten years to ensure equal electoral representation. Each state Senate district has been increased to represent 940,178 residents. As a result, several borders have been redrawn, which means that many areas will change constituencies in the next election. Visit the Texas Districts Map website or the Texas Comptroller website for more information on changing boundaries. Contact one of our agents today to see how this may affect your oil & gas and commercial real estate properties in tax year 2022.

Dependents of Fallen First Responders

House Bill 133 was also recently passed by both houses. Called the Caleb Rule Act, it extends the higher education tuition fee provisions to college-age dependents of deceased first responders. Previous legislation only established such benefits for dependents under the age of 18 at the time of death. The law is now transferred to the governor’s office.

Capital projects for higher education

Governor Abbott previously included investments in education for the purpose of the Special Legislative Session. As a result, the chambers were able to negotiate a proposal to assemble more than $ 3 billion in investment projects for institutions across the state. Under the program, $ 325 million from the US Rescue Plan will be used for these educational investments.

Penny D. Jackson