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SJR 2

Proposing a constitutional amendment to increase the amount of the exemption of residence homesteads from ad valorem taxation by a school district.
Overall Vote Recommendation
Vote Yes; Amend
Principle Criteria
positive
Free Enterprise
positive
Property Rights
neutral
Personal Responsibility
neutral
Limited Government
positive
Individual Liberty
Digest
SJR 2 proposes a constitutional amendment to increase the homestead exemption for school district property taxes from $100,000 to $140,000. This exemption applies to the market value of a homeowner’s primary residence for the purposes of ad valorem taxation by school districts. The amendment also allows the legislature to adjust the exemption for disabled persons and individuals aged 65 or older based on economic need. If approved by voters, the increased exemption would take effect for the 2025 tax year, and the state would be responsible for compensating school districts for any revenue loss resulting from the change​.
Author (29)
Co-Author (1)
Borris Miles
Sponsor (5)
Morgan Meyer
Trey Martinez Fischer
Greg Bonnen
Todd Hunter
Chris Turner
Co-Sponsor (101)

Contact the Author

Sen. Paul Bettencourt

Capitol Phone:
(512) 463-0107
Capitol Office:
CAP 3E.16
E-Mail:
[email protected]
Visit Official Website
Fiscal Notes

According to the Legislative Budget Board's fiscal note, the increase in the homestead exemption from $100,000 to $140,000 would reduce school district property tax revenue. The state would partially reimburse school districts for this revenue loss. However, the exact fiscal impact on the state budget and school districts is detailed in the fiscal note for Senate Bill 4 (SB 4), which is the enabling legislation for S.J.R. 2.

Additionally, the cost to the state for publishing the proposed constitutional amendment in election materials is estimated at $191,689.

The amendment, if approved by voters on November 4, 2025, would take effect for the 2025 tax year, beginning January 1, 2025.

Vote Recommendation Notes

The most effective and equitable way to provide lasting property tax relief for all Texas taxpayers is to use state surplus funds to buy down the Maintenance and Operations (M&O) portion of school district property taxes. This method ensures that every property owner—homeowners, businesses, and renters—benefits from broad, long-term tax reduction rather than temporary or uneven relief. Unlike homestead exemptions, which primarily help certain groups and shift the tax burden onto others, compressing M&O tax rates lowers taxes for all property owners and provides a more predictable and sustainable solution.

SJR 2 includes language requiring the state to compensate school districts for any revenue lost due to the increased homestead exemption. While raising the homestead exemption does offer short-term relief to homeowners, its impact weakens over time as rising property values and local government spending diminish its effectiveness. Furthermore, increasing exemptions shifts the tax burden onto renters, businesses, and other property owners who do not qualify for the exemption, creating an imbalance in the tax system.

To maximize long-term tax relief, SJR 2 should be amended to prioritize rate compression over exemption increases. By directing a significant portion of the state’s surplus funds toward permanently reducing M&O tax rates, Texas can ensure that all property owners experience meaningful and lasting tax relief while promoting fiscal responsibility and economic growth.

Political Landscape:

  • The Republican Party of Texas supports lowering property taxes as a means to ultimately eliminate them in favor of a consumption-based tax system​.
  • The Libertarian Party of Texas generally favors tax cuts but opposes state redistribution of funds to cover local revenue losses​.
  • The Texas Democratic Party while supportive of property tax relief prefers more targeted exemptions for low-income households and increased state funding for education​.

Governor Greg Abbott and Lt. Governor Dan Patrick have designated property tax relief as a top priority, though it is unclear whether they agree on the method by which it is delivered. Texas Policy Research encourages lawmakers to support this legislation as it does provide property tax relief to some Texas taxpayers but also encourages them to find a way to lessen the property tax burden so all Texas taxpayers benefit.

References

The Texas Legislature's Broken Promises: Rising Property Taxes Despite "Relief"

Texas Property Tax Relief: Why Current Efforts Fall Short and How to Fix Them

The Growing Movement to Eliminate Property Taxes: Will Texas Join the Tax Revolt?

Texas Property Taxes Across Largest Counties and Cities

Texas Property Tax Levies 1998-2023

Related Legislation
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