On Tuesday, the Texas House unanimously passed a bill to raise the state’s homestead exemption from $100,000 to $140,000. The move is aimed at lowering Texans’ property taxes. The legislation will cost the state an estimated $2.7 billion through August 2027.
The measure also includes a “hold harmless” provision. That’s designed to ensure school districts don’t lose funding due to decreased tax revenue. A similar stipulation was included in a 2023 bill that increased the homestead exemption.
But before the final passage, Rep. Mike Olcott, a Fort Worth Republican, introduced an amendment to raise the exemption even more. Olcott’s proposal would raise the exemption to $160,000 by using money from state’s $24 billion dollar budget surplus.
OLCOTT: “My amendment will allow for a greater amount of that money, that $24 billion dollars, to be used for property tax relief, and I think we need to support this.”
The House did not support the amendment. The measure now heads back to the Senate for that chamber’s approval.
