September 7, 2021
The Texas House passed new legislation providing relief to the residents of Texas by way of lowering property tax bills through Senate Bill 8, Senate Bill 12, and Senate Joint Resolution 2. The proclamation came in on August 5th by Governor Greg Abbott advising the legislature to gather and address these topics.
The Senate Bill 12/Senate Joint Resolution 2 deals with the total amount of ad valorem taxes that a school district can impose on the residence homestead of an elderly or disabled individual that reflects any reduction from the preceding tax year in that district’s maximum compression rate. These two bills give voters the option of extending the tax rate compression to those over 65 or disabled from HB3. This would allow them to see a reduction in M&O tax rates. For clarity, HB3 provides compression of the M&O tax rate for individuals paying property tax, and the state provides additional funds to school districts because of lower tax rates among local schools.
Senate Bill 8 allows individuals receiving a residential homestead an ad valorem tax exemption in the year they acquired the property. Current law does not allow for that, instead of requiring a homeowner to wait until January 1 of the following year after purchase to receive a homestead exemption benefit.
Representative Hugh D. Shine said of the measures, “I am proud to have authored these bills during the first special session, voting for these pieces of legislation, and being a joint author in the second special session. I am thankful for Governor Abbott adding property tax relief to both special session calls. It is an issue that is very important to me and everyone across Texas.”
All three bills will head back for final confirmation from the Senate before going to the Governor’s desk for signature.