Texas homeowners and businesses will get a tax cut after voters approve Proposition 4 in 2023

The $18 billion property tax-cut package is aimed squarely at lowering school district property taxes, which make up the lion’s share of a Texas landowner’s property tax bill.

Great news for local property owners! With the recent passage of Proposition 4, you're set to see a notable decrease in your upcoming property tax statements. Laura Aranda from the Harris County Tax Office shares that these statements, showcasing lower tax rates and increased exemptions, are on their way to your mailbox. 📬

Here's the scoop:

📉 Lower school district property tax rates mean more money in your pocket.

🏡 The homestead exemption boost from $40,000 to $100,000 could save you over $1,000 on your bill.

🔍 Make sure you're getting all your entitled exemptions, especially if you're over 65, for additional savings.

No cuts to education funding here! The state has pledged to cover any shortfall, ensuring our schools remain supported while giving homeowners the relief they need. 📚💡

Tax statements are already online and physical copies are being mailed this week. Don't forget, taxes for 2023 are due by January 31, 2024. Have questions or need help ensuring you're getting every exemption? Reach out to the Harris County Tax Office for assistance. Let's celebrate this win for Texas homeowners! 🎉

Laura Aranda, communications director for the Harris County Tax Office says tax statements have already been posted online and are being mailed this week.

"So, you will see on your tax statement, if you review the tax rates that are being charged by taxing entities, your jurisdictions, if you go to the line for your ISD, you will see that it's lower than the year prior," Aranda said. "And so, you should see some savings on your tax statement."

Proposition 4, which voters overwhelmingly approved last fall, amended the Texas Constitution to lower school district property tax rates and to raise the homestead exemption.

"This is the exciting part for the majority of people who own their homes, who reside in their homes and have a homestead exemption," Aranda said. "They will now receive on their school property taxes, their exemption is going to increase from $40,000 to $100,000. So, depending on the value of someone's home, you could save at least over $1,000 on your property tax bill."

Aranda said homeowners should doublecheck to make sure they're receiving all the exemptions to which they're entitled, as homeowners over 65 are entitled to an additional exemption. "That's one thing that is incumbent on the property owner," she said. "If you need any help with that, you can contact the Harris County Tax Office."

Under the terms of Senate Bill 2, passed during the second special session of the Texas Legislature this year, the tax breaks will not translate to cuts in education funding.

“People may ask, where is that money coming from then?” Aranda said. “The state is stepping in, and they’re going to fund whatever needs to be replaced so that property owners can get that property tax relief.”

This landmark decision not only fulfills a long-standing goal for tax reform advocates like Lt. Governor Dan Patrick and Senator Bettencourt but also promises a direct financial benefit to Texas property owners. By reducing the burden of school district property taxes, Proposition 4 ensures that residents will see a tangible decrease in their property tax bills, granting them relief from what has been a persistent financial pressure.