Texans’ Homestead Exemption Act

For far too long, property taxes in Texas have been a burden on Texas families, especially homeowners. This session, we have the opportunity to lessen that burden by passing the Texans’ Homestead Exemption Act, which I am proud to author. This act will put $1,400 in the average homeowner’s pocket. By increasing the sales tax base, the state will pay its fair share toward public education while locals will see their share reduced. The state’s share for education funding will increase from 38 percent to 50 percent, and locals’ share will decrease from 50 percent to 38 percent.

Expanding our sales tax base through eliminating specific loopholes, exemptions, exclusions, and incentives lower the reliance on Robin Hood, dropping school districts subject to recapture from 221 to 164, a 26 percent reduction, and reduces the amount paid by those still subject. Texas businesses are not left out of this plan and will see major savings as well in the form of a 100 percent tax exemption on commercial retail inventory. The compression of maintenance and operation (M&O) tax rates by $0.10 helps all Texans.

This plan will eliminate numerous exemptions, exclusions and incentives. However, this plan will not eliminate the exemptions, exclusions, and incentives that make our state affordable for residents and competitive for business.