Taxpayers to Lose Homestead Exemption on New State Property Tax
Bettencourt Urges to Save “It” or Kill the Bill

HOUSTON – May 10, 2005 – Harris County Tax Assessor – Collector Paul Bettencourt urges State Senators to oppose this portion of the Concurrent Senate House Bill No. 3 (CSHB 3). Enactment of the current bill would significantly raise property taxes under the pretext of “Educational Reform.”

“The highly complex tax bill CSHB 3 effectively eliminates the general homestead exemption on the proposed state property tax, for 420,681 homesteads in Harris County,” said Bettencourt. “The average tax increase per homestead in Harris County due to the permanent loss of this exemption would be $332 annually.”

The optional 20% homestead exemption is currently approved by ISD trustees on a district-by-district basis. CSHB 3 would replace local property taxation with a statewide property tax, setting limits on a homestead exemption to $15,000 and the over-65 exemption to $10,000.

“Here’s the real problem for all Texas Homeowners in this proposal. Under a clause entitled “Tax Relief for Residence Homesteads,” the existing optional 20% homestead exemption on ISD property taxes must now be paid for by other school revenue for the first time in the state of Texas history. Right now this homestead exemption keeps 420,000 Harris County homeowners from paying up to 25% more on their ISD property tax bill by reducing the value of their home’s appraised value. Because the Senate version of this bill could shift all current ISD property tax collection to a statewide property tax, these formerly “free” exemptions on a local level have to be paid “back” to the state even though the homeowners don’t pay on them today!” added Bettencourt

“What’s even worse is these exemptions would have to be paid to the state with funds from existing revenue or a proposed “Enrichment Tax” that the voters would have to approve. In plain English it means voters would have to vote to raise property taxes on all property owners in order to pay for an existing homestead exemption which the school districts currently doesn’t collect a dime on, which is a ridiculous scenario for Texas property taxpayers!” stated Bettencourt.

Taxpayers interested in this issue need to call their State Senators today. It is estimated that the elimination of the optional 20% homestead exemption would negatively affect more than a million homeowners statewide.

2004 Optional Homestead Exemption Statistics for Harris County ISDs

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