Gov. Greg Abbott signs tax-relief package raising homestead exemptions and small-business break

Gov. Greg Abbott signed three measures at a Robeson Ranch event in Denton County that he said will reduce property taxes for homeowners, seniors and small businesses.

"I'm gonna sign, 3 pieces of legislation that lower those taxes," Abbott said, announcing that two bills expand homestead exemptions and a third boosts the business personal property exemption.

The legislation raises the general homestead exemption to $140,000 and increases the exemption for Texans 65 and older and people with disabilities to $200,000, Abbott said. "So for the first $200,000 evaluation of your home, there's not gonna be any school property tax that you have to pay," he told the assembled residents and lawmakers.

Abbott said the business personal property exemption — which had been $2,500 — will be raised to $125,000, a change he described as targeted relief for small businesses. He attributed the measures to the legislation’s sponsors, including Senator Bettencourt and Representative Morgan Meyer.

Sen. Bettencourt, who spoke at the event, framed the package as a large fiscal commitment and projected household savings if voters approve related ballot measures: "We're looking at saving the average home $1,750 when you say yes in November," he said, adding that seniors could see larger benefits.

Officials said the tax relief is funded through the current legislative session’s appropriations. Abbott cited what he described as $10 billion in new property-tax relief spending and an additional $40 billion necessary to maintain relief over time, saying "we spent $50,000,000,000 this session on property tax relief." He also told reporters the state’s rainy day fund holds roughly $24,000,000,000 to help sustain relief if the economy weakens.

Abbott said the changes will be placed before voters as constitutional amendments on the November ballot so that the exemptions are protected beyond a single legislative session. Representative Morgan Meyer, who also addressed the crowd, praised cooperation between the House and Senate in crafting the package.

In a brief question-and-answer session, Abbott addressed security and enforcement questions. He said the Texas Department of Public Safety and the National Guard are coordinating with federal authorities when necessary and that a person who posed a threat on the Capitol grounds had been arrested. On immigration enforcement, Abbott reiterated his position that "there is no sanctuary city in the state of Texas," referencing earlier legislation that he said prohibits sanctuary policies.

The signing capped remarks from local and state officials gathered for the event; Abbott and the legislators said the next procedural step for the constitutional amendments is voter approval in November.