Changes to Homestead Exemption

I’ve got more information on the property tax reform bill for Texas.  First, the homestead exemption for school district property taxes will increase by $60,000 from $40,000 to $100,000.  Again, a homestead property is your primary residence. So how much money does this actually save you?  Simply multiply your school tax rate by $60,000, and you’ve got your savings.  This change must be approved by Texas voters so it will be on the November ballot.  It's going to pass by a huge margin. In addition to the increase to $100,000, seniors and the disabled will get an extra $15,000 homestead exemption.  The other major facet is what we call tax compression.  School districts will lower their tax rate by 10.7% for the M&O side of the tax bill.  This reduction in taxes impacts all properties so it’s a benefit for owners of commercial and investment properties, not just those who have a homestead exemption.