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Tax Relief for Texas Property and Business Owners
Friday, February 27, 2015 7:00 AM

The Texas Senate has introduced three bills that, if passed, will decrease taxes on Texas’ property owners and business owners. 

SB1 would change the state’s mandatory homestead exemption from the current $15,000 flat-rate to 25 percent of the statewide median home value. The dollar value of the exemption would rise or fall as the median home value changed. Under the current plan, some homeowners have seen the tax savings from the exemption masked by rising appraisals. 

The state, rather than local school districts, would absorb the revenue loss. State leaders believe the state can withstand the losses due to the state's positive financial status. The bill would amend the state constitution, so voter approval is required. Sen. Jane Nelson, chair of the Senate's Finance Committee, would like to see the measure on the ballot by September so taxpayers could see relief in 2016. 

Senate bills 7 and 8 would reduce the franchise taxes paid by businesses. SB7 reduces the rate of business franchise tax by 15 percent. SB8 increases the amount of revenue that businesses can earn from 1 million to 4 million before they must pay franchise taxes. Approximately half of the businesses currently paying the tax would become exempt, costing the state around $380 million over two years.

These bills were filed on Feb. 24, 2015, and have been referred to the Senate Finance Committee.

If you have any questions about the tax relief proposals, please contact Jeff Huffman, president, Texas Credit Union Association, at (469) 385-6488 or jhuffman@txcua.coop.