AUSTIN (Nexstar) — A plan to cut property taxes for senior citizens and disabled Texans is moving forward at the State Capitol. The Texas Senate voted 30-1 Wednesday to approve Senate Bill 23, which raises the homestead exemption for those 65 and older.
"I've heard about aging in place and wanting to stay in your home, and that's what this bill will do," State Sen. Paul Bettencourt, R-Houston, said before the vote.
The bill raises the additional homestead exemption for elderly and disabled homeowners from $10,000 to $60,000. That's on top of the current $100,000 exemption for Texas homeowners. The homestead exemption is the amount of a home's value that is not subject to property taxes.
Earlier this session, senators passed SB 4, which calls for raising the homestead exemption for all homeowners from $100,000 to $140,000. That could save the average Texas homeowner nearly $500 annually in taxes.
Bettencourt estimates that the increased exemption will save the average over-65 or disabled homeowner more than $950 annually in taxes. That would be on top of the savings from SB 4, should it pass into law and win approval from voters in a constitutional amendment election.
"This is $1.2 billion well spent, well focused on 2.08 million homeowners that need it the most because they've paid a lifetime of taxes, or B, they're on fixed income and have the most difficulty staying in their homes," Bettencourt said.
The legislation now moves to the Texas House for consideration. If it passes, it would require voter approval of an amendment to the Texas Constitution for the increased exemption to take effect. Senators also passed a resolution to put the issue before voters in November.
