In an 11th hour move late Monday, Texas lawmakers made a mad dash toward pushing through legislation that would allow for a permanent increase to the state’s property tax homestead exemption. Mere hours after discussion began on Senate Joint Resolution 2, it unanimously cleared both the Senate and the House.
SJR 2 allows for Texas voters to decide next year on an amendment to the Texas Constitution. Were voters to approve the amendment, the increased exemption would officially be solidified into state law.
“Homestead exemptions will have increased from $25,000 to $40,000 in 2022,” said the bill’s author, State Senator Paul Bettencourt. “The public will be voting on this in May of 2022 and it will be effective in the same tax year.”
Passage of the amendment would provide immediate savings for the average tax bill for homesteaded property owners, according to Bettencourt.
“The homestead exemption will provide an immediate savings next year of $176.25 to all of those homeowners that are qualified,” he said.
It’s estimated that approval would cost the state about $600 million annually. Bettencourt said the first year could be paid for using some of the state’s $4.4 billion surplus, however it’s still unclear how the state might cover the gaps in the years that would follow.
This November, voters will also decide on eight other amendments to the Texas Constitution.
