Austin, TX – Senator Paul Bettencourt (R-Houston) lauds the passage of Proposition 4 by Representative Will Metcalf (R-Conroe) and Senator Bettencourt, the constitutional amendment for Senator Bettencourt’s $18 billion property tax reduction bill, SB 2. The “Texas Two-Step” with the $100,000 homestead exemption and 18% decrease in M&O property tax rate compression is cited as the largest property tax reduction package in the world. But wait there's more as SB 3, also by Senator Bettencourt doubles the franchise tax exemption, taking 67,000 Texas businesses off the franchise tax roll beginning in 2024. All Texas Taxpayers, both homeowners and business owners will benefit from tax reduction. The bill, HJR 2, passed unanimously in the Texas Senate and passed the Texas House 132-5.

"This is record property tax reduction in the United States! There is one State in the Union that just voted for $18.1 billion of property tax reduction, Prop. 4, and that’s the State of Texas! As I predicted, Proposition 4 was passed tonight by a supermajority of voters because of the State’s surplus they will see eye-popping savings!” Stated Senator Bettencourt.

Today, Texas voters approved Proposition 4 which includes the following:

• Increases Texas homestead exemption to $100,000 on 5.72 million Texas homeowner’s ISD property tax bills effective on this year’s property tax bill, and approves a “catch-up” for over-65 and disabled for the $15,000 homestead exemption increase adjustment from the May 2022 state-wide election. Plus, an 18% decrease in the M&O property tax rate compression.
• Three county citizens will be elected county-wide in May of 2024 to join each County Appraisal Districts (CAD board) of directors in non-partisan positions. The elected CAD board of directors will now help select Appraisal Review Board (ARB) members in each county with 75,000 population or greater.
• Approves non-homesteaded real property valued at $5 million and under to receive a 20% circuit-breaker on appraised value increases as a 3-year pilot project. The constitutional circuit breaker will sunset Dec. 31, 2026, however, the constitutional fund set up to fund SB 2’s property tax cut will remain evergreen.

“Fighting for property tax reform is something Lt. Governor Dan Patrick and I have been doing together for almost 20 years in the making. To have all of everyone’s hard work pay off, it's fantastic to see the public finally getting the property tax reduction they have always wanted and deserved. It’s great to give people their money back from excess budget collections.” Concluded Senator Bettencourt.

Now with the passage of Proposition 4, SB 2 will be retroactively in effect as of January 1, 2023 and the changes will be on Texas Taxpayers’ Fall property tax bill. SB 3 goes into effect January 1, 2024.

Senator Bettencourt is in his District Office for comments/zoom calls this evening (713) 464-0282.

###