Texas has the 6th highest property taxes in the nation.
Texas comes in 44th in supporting public education.
School districts are the largest piece of your tax bill.
Average homeowners are looking at a 41% tax bill cut as soon as this year.
Texas comes in 49th in the nation for state tax collections per capita.
Highlights of the Tax Cuts Approved:
- Homestead exemption raised from $40,000 to $100,000 (school district tax only).
- School property tax rate reduced to 10.7 cents per $100 valuation.
- Non homesteaded residential and commercial properties under $5M will receive a 20% cap on appraisal increases.
- Doubled the franchise tax exemption to $2.47M, taking 67,000 out of the franchise tax system.
- If your entity doesn't owe franchise tax, you also won't have to file a Public Information Report with the Texas Comptroller.
- Almost a 24% reduction to school district maintenance and operation tax rates for the next two years.
- Some members of the appraisal review board will now be elected. Previously, all were appointed.
How much will it really save average homeowners?
Sen. Paul Bettencourt, stated this would save the average homeowner about 41.5% on property taxes each year, or an average of about $1,300 per year.