On Sunday, February 2, Texas Governor Greg Abbott delivered his 2025 State of the State address, outlining his top priorities for the 89th session of the Texas Legislature, which runs until June 2. A major focus of his agenda is property tax relief, as he aims to prevent local taxing entities from increasing property taxes unless two-thirds of voters approve. Abbott made his stance clear, stating, “No approval, no new taxes.”
Property Tax Reform & Relief Efforts
Gov. Abbott’s proposed tax relief plan builds on past reforms and includes:
- Allocating at least $10 billion from the state’s budget surplus for property tax relief
- Speeding up tax rate compression to lower school district M&O tax rates, benefiting all property owners
- Requiring two-thirds voter approval for all local tax increases to close loopholes used by local taxing authorities
- Raising the business personal property tax exemption to $100,000 to ease the burden on small businesses
- Mandating that local bond issues and tax rate elections be placed on the November ballot and approved by a two-thirds supermajority
Building a Stronger Texas
Abbott framed his vision for Texas as a state of economic growth, personal freedom, and opportunity, emphasizing Texas’ status as the eighth-largest economy in the world.
“This 89th Legislative Session brings new opportunities to strengthen our national and global position as the beacon of economic opportunity, prosperity, and individual liberty. Working together, we will continue to build a stronger Texas for generations,” Abbott said.
With the legislative session now underway, all eyes will be on how lawmakers navigate these proposals and what this could mean for Texas homeowners, businesses, and communities in the years to come.
