If approved in the November election, Texas homeowners can save nearly $500 a year in property taxes.
DENTON, Texas — Governor Abbott is expected to sign off on a property tax deal Monday afternoon to help benefit homeowners and businesses across the state.
Nearly a quarter of the state budget for the next two years is going to property tax relief.
First, voters will have to approve it in the November election.
If approved, Texas homeowners can save nearly $500 a year in property taxes. Seniors and disabled homeowners will be able to save close to $1,000.
Senate Bill 4 increases the current homestead exemption of $100,000 to $140,000.
A homestead exemption protects how much of your home property value can be taxed to pay for public schools.
For example, if your house is worth $400,000 dollars, you’d only pay $260,000 in school property taxes.
Senate Bill 23 provides another exemption for seniors and disabled homeowners to knock off an additional $60,000 on their property value to total a $200,000 homestead exemption.
For business owners in House Bill 9, the property tax deal would make $125,000 of their personal property exempt from schools, cities and counties.
This can include equipment, tools, vehicles, and any product ready to sell.
Currently businesses don’t have to pay taxes on any of these things if they’re under $2,500 dollars.
For school districts, the state would pick up the property taxes businesses would provide them.
For cities and counties relying on homeowner taxes, they would have to raise tax rates to make up for the lost income or go without it.
Governor Abbott is set to sign the property tax bill Monday afternoon in Denton.
Once signed, voters have to approve the changes in the November election.