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Texas homeowners are one step closer to receiving a property tax break after Senate approves bill

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Texas homeowners are one step closer to receiving a property tax break after Senate approves bill


The Texas Senate on Thursday quickly and unanimously advanced a proposal to provide billions of dollars in tax breaks to homeowners in a bid to blunt the state’s high property tax bills.

Senate Bill 4, that chamber’s marquee property tax-cut proposal, would set the state’s homestead exemption on school district taxes at $140,000 of value, which is the amount exempted from being taxed to pay for public schools. The current exemption sits at $100,000.

Senators approved the bill by a 30-0 vote, two days after the chamber’s Local Government Committee unanimously approved the bill. The bill now goes to the Texas House.

Voters would have the final say in whether to give themselves a tax cut. Adjusting the homestead exemption requires voters to approve an amendment to the Texas Constitution.

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The bill would result in substantial tax decreases for homeowners, said state Sen. Paul Bettencourt, a Houston Republican who authored the bill. In nearly half of the state’s school districts, the average value of a home sits below $140,000, Bettencourt said. That means the average homeowner will effectively pay no property taxes toward public schools. At least 80% of Texans age 65 and up would be exempt from those taxes if the exemption takes effect, Bettencourt said, citing estimates from the Texas Silver-Haired Legislature, a nonprofit that advocates for elder Texans.

“There’s no lower number than zero,” Bettencourt said. “It’s the best number a tax bill can ever get for payers.”

Texas lawmakers this year have once more vowed to tackle the state’s high property taxes, intending to bring relief for homeowners and businesses. Gov. Greg Abbott designated property tax cuts an “emergency item,” enabling lawmakers to quickly pass legislation – and called on them to spend billions to continue cutting property taxes.

Senate budget writers have set aside $3 billion to increase the homestead exemption in the state’s upcoming two-year budget. Boosting the exemption would cost the state $7.7 billion by 2030, according to an estimate from the Legislative Budget Board.

Abbott vows pay raises for teachers and more property tax relief

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Texas Gov. Greg Abbott vows to push business-friendly policies, cut down on property taxes, and pass a school voucher-like program.

Legislators also expect to send an additional $3 billion to school districts over the next two years so they can bring down their tax rates – a cost lawmakers committed to in previous sessions.

Combined, those cuts would have saved a homeowner paying the average school district tax rate about $528 on their taxes last year had those measures been in effect, a Texas Tribune calculation shows.

Texans pay among the highest property taxes in the country, according to the Tax Foundation. Those bills are high because the state doesn’t have an income tax and leans heavily on property taxes to pay for public schools, police officers, firefighters and streets among other public services. The median Texas homeowner’s tax bill rose nearly 30% from 2010 to 2023, U.S. Census Bureau data show – nearly three times as fast as the country as a whole.

For the past several years, Republican state lawmakers have pushed to rein in rising property tax bills. That push culminated in 2023 with $12.7 billion in new tax cuts, including a boost to the state’s homestead exemption and billions of dollars for school districts to reduce how much they collect in property taxes.

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Homeowners across the state appeared to see relief from that legislation combined with other moves enacted since 2019, a Texas Tribune analysis of homeowners’ tax bills found.

The amount of money school districts collected from property taxes grew in 2024 after those revenues fell the previous year, estimates from the Texas Comptroller’s office show. The average homeowner’s tax bill in Travis, Harris and Dallas counties also grew, according to a Tribune estimate using local appraisal and tax rate data – in part owing to growth in property values. Some localities in Travis and Harris counties also raised their tax rates. But bills in those counties remained at or below where they stood before the COVID-19 pandemic.

Nonetheless, some lawmakers voiced frustration that taxpayers aren’t feeling relief – despite the billions of dollars the Legislature has spent on tax cuts. There’s “a lack of trust that when we say we’ve given them a tax cut, that they really believe that it is a tax cut,” said state Sen. Lois Kolkhorst, R-Brenham, who ultimately voted in favor of the bill.

“Don’t take a victory lap today, because our work is really just beginning,” Kolkhorst said.

Property tax bills would be even higher if not for moves by the Legislature since 2019 to rein in the state’s high property taxes, tax-cut advocates have argued. Texas is slated to spend at least $51 billion on tax cuts, including property tax cuts, in the state’s upcoming two-year budget.

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“Senator, I am going to celebrate this bill today,” Lt. Gov. Dan Patrick said, addressing Kolkhorst. “I’m going to shout it from the rooftops because it is a great bill.”

Lawmakers will likely take up other measures to rein in property taxes this year, lawmakers noted. Patrick noted that Abbott has called on legislators to require localities including cities, counties and school districts to go to the voters if they want to raise their tax rates.

Legislators have drawn on large budget surpluses to fund property tax cuts. Some senators warned Texas won’t always enjoy those surpluses, jeopardizing those cuts and potentially leaving schools on the hook.

The state’s 4.2 million renter households won’t directly benefit from an increase in the homestead exemption because rental property owners aren’t eligible for homestead exemptions. Tenants pay property taxes via their rent, but Texas doesn’t provide direct tax relief to them as it does homeowners.

SEE ALSO: 2025 tax season begins | What to know before you file

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January 27 marks the first day that the IRS will start accepting and processing 2024 income tax returns.

Responding to a question from state Sen. José Menéndez, a San Antonio Democrat, Bettencourt said renters will benefit from the $3 billion lawmakers plan to use to cut school tax rates because landlords will pass along benefits from tax cuts to renters to stay competitive. Rent growth has slowed considerably in the state’s major metropolitan areas – and in the Austin region, rents have fallen for nearly two years.

Bill supporters said boosting the homestead exemption would lower costs for existing homeowners who are facing increased housing costs not just from taxes, but on items such as homeowners insurance. They said increasing the exemption would also lower the barrier to homeownership for Texans who may otherwise have a hard time getting a leg up in the current market. That could mean first-time homebuyers or long-time homeowners who may want to move, said Dixon Holman, an Arlington real estate agent who sits on the board of Texas Realtors.

“It’s not a panacea but it certainly makes a difference,” Holman told lawmakers during Tuesday’s committee hearing.

But greater tax breaks may actually contribute to higher home prices, a recent study from New York University and University of Hamburg suggests. Researchers found that homeowners are less likely to move if they get a bigger tax benefit. That leads to fewer homes on the market, which drives up prices as competition increases over a limited supply of homes. Texas has more homes on the market than it did during the COVID-19 pandemic, but still faces a steep shortage.

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Senate lawmakers have set aside another $500 million to fund tax cuts for businesses. It’s not clear yet how exactly those will work because the accompanying legislation has not been filed.

It’s also not yet clear how the Texas House intends to pursue property tax cuts this year. Newly elected House Speaker Dustin Burrows, R-Lubbock, hasn’t yet assigned representatives to committees, so legislation has not yet started moving in that chamber.

The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans – and engages with them – about public policy, politics, government and statewide issues.



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A Judge Issued a Rebuke to the Texas GOP’s Claims About the East Plano Islamic Center

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A Judge Issued a Rebuke to the Texas GOP’s Claims About the East Plano Islamic Center


For more than a year, high-profile Texas Republicans have argued that Muslims are secretly plotting to take over Texas, centering their outrage on the East Plano Islamic Center, a mosque and Muslim community in North Texas known as EPIC. That hysteria resulted in a range of government enforcement actions last year, including a probe by the Texas Funeral Service Commission that barred EPIC from performing funeral rites. Last July EPIC sued the state, alleging Texas had violated its religious freedom. Late Wednesday, a federal judge in the Western District of Texas ruled that the mosque’s lawsuit can proceed despite the state’s attempt to dismiss it. In his ruling, the judge also issued a strong rebuke to claims made by Governor Greg Abbott and other state officials, writing that “no evidence has been presented” that EPIC intends to impose “Sharia law,” Islamic teachings based on the Quran and words of the Prophet Muhammad, on Texans.  

The case stems from last March, when the funeral commission issued a cease and desist order that barred the mosque from performing traditional cleansing, shrouding, and prayer over bodies, on the grounds that EPIC may have been unlawfully conducting such rites without a license. (EPIC denies this allegation.) As Texas Monthly has reported, the agency was pushed to issue the order by some of Abbott’s closest advisers, who had made unsupported claims that EPIC and a proposed housing development it was affiliated with, EPIC City, was building a “no go zone” exclusive to Muslims (it was not).

EPIC sued the funeral commission in July 2025, arguing that the cease and desist order was an unconstitutional prohibition on religious practices. In Islam, preparing bodies for funerals stands as one of the most sacred rites; by the time of EPIC’s lawsuit, according to the petition, at least eleven congregants had been forced to receive rites elsewhere—away from their home mosque. 

EPIC later amended its lawsuit to include former funeral commission chair Kristin Tips after text messages were released showing she had shared anti-Muslim messages and videos as the agency’s investigation unfolded. Among the examples was a graphic Tips had sent to the commission’s then–executive director, Scott Bingaman, that accused Islam of allowing child marriage and pedophilia. After sending it, Tips texted Bingaman a YouTube video with the title: “EPIC CITY TEXAS! Are Muslims planning a TAKEOVER?”

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For nearly a year, the case has been locked in a procedural back-and-forth as Tips and the agency—represented by Attorney General Ken Paxton’s office—have pushed for the court to dismiss the case. Late Wednesday evening, Judge David Alan Ezra, a Ronald Reagan appointee, issued an order denying Tips’s attempt to dismiss the lawsuit. He also rejected Tips’s claim of qualified immunity, which can shield government officials from personal liability in civil cases. That rejection is rare in courts, such as this one, that appeal to the Fifth Circuit, which is one of the most conservative federal appellate courts in the country and is typically welcoming to government defendants. 

In his ruling, Ezra cited the funeral commission’s deviation from historical norm in the EPIC case, as the agency has repeatedly asserted—first in 1987 and again in 2014—that Islamic religious organizations could conduct funeral and burial services without government oversight. The judge also affirmed that the alleged conduct—including the cease and desist order and Tips’s anti-Muslim messages—was seemingly “the result of religious discrimination” that violated EPIC’s clearly established religious rights under the Constitution’s Equal Protection Clause and other laws protecting religious liberty. In a rather remarkable footnote, the judge added that, based on the evidence offered, the court firmly rejected claims “suggesting that EPIC has applied, or intends to apply, ‘Sharia law’ in its practices.”

Though the case will now continue to wind through the courts, the judge’s ruling is a firm rebuke of the anti-Muslim political hysteria fueled by Abbott and his team of advisers. As Texas Monthly reported this month, the governor’s inner circle took an unusually active role in the funeral commission’s regulatory case against EPIC. After being looped into the agency’s pending investigation, which stemmed from an April 2024 complaint levied by a private individual, the governor’s attorneys, including Abbott’s general counsel, Trevor Ezell, edited the boilerplate cease and desist order the commission was ready to issue to make it more severe and punitive. 

The original document, drafted by a funeral commission staffer, included a line warning that noncompliance would result in the agency taking “legal action.” Abbott’s team struck that line and suggested replacing it with a “criminal referral” to the Collin County district attorney—in what amounted to a hijacking of the agency’s usual independent regulatory process. At one point, a close adviser of Abbott even reported to a commission staffer that Abbott had texted him that after the cease and desist order was sent out, the funeral commission was his new favorite agency.

Over the following months, the governor’s advisers, including Ezell and a budget and policy adviser, Alex Aragon, weighed in often on the EPIC probe, requesting regular updates, coordinating public statements, and, at times, directing regulatory action. When the agency investigated other cases—such as a high-profile incident in which a Dallas funeral home allegedly accidentally shipped a stillborn baby to a Louisiana laundry facility—the governor’s team exhibited no similar interest. More than a year after the funeral commission’s cease and desist order, its investigation remains ongoing. No violations have been found. 

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Tips, the agency’s former chair, led the funeral commission until March 12, when, according to an email obtained by Texas Monthly, she “prayerfully” resigned, effective immediately, late in the night. While the circumstances around her departure remain unknown, she had spent months under fire for allegations that she had illegally lobbied for tort reform in her position as chair, which she denies. But in her absence, the governor’s pursuit of EPIC has continued. In March, the funeral commission issued a broad new subpoena to EPIC, seeking every record of funeral services that the mosque has on file. 

After EPIC’s attorneys pushed back, arguing the order was too large in scope, Paxton’s office got involved—issuing a letter that demanded EPIC comply. Meanwhile, Abbott has continued his crusade against the mosque, going on Fox News earlier this week to deride EPIC and what he alleged were “multiple violations” of the law. The governor has touted that a dozen state agencies have investigated EPIC. To date, no criminal charges have been filed against the mosque, and a federal probe into EPIC by the the Department of Justice was dropped with no findings of malfeasance.



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USDA reports screwworm spread in Texas

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USDA reports screwworm spread in Texas


The USDA now confirms 20 cases of the New World screwworm in Texas, with the most recent reported outside Medina County, and four more cases reported Tuesday in Terrell County. Officials are releasing millions of sterile flies to slow the parasite’s spread.



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Why Texas? Explaining ins and outs of NHL exploring team for Houston or Austin

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Why Texas? Explaining ins and outs of NHL exploring team for Houston or Austin


The NHL took the first step toward expansion in Texas earlier this week, agreeing to terms with billionaire Dan Friedkin and his family to explore the feasibility of putting a franchise in Houston or Austin.

Far enough from the Dallas Stars, who relocated from Minnesota in 1993, a new team would not interfere with their territorial rights. And the league has shown no fear of adding one team at a time, so No. 33 does not have to come with No. 34.

“Symmetry I don’t think should necessarily govern expansion,” Commissioner Gary Bettman said Tuesday. “You expand if you think it makes sense and enhances what the league has.”

What is behind the NHL’s interest in Texas

Money is the obvious answer. Bettman said the total investment of the project would be some $3.5 billion, which would include expansion fees paid to established owners along with the cost of building a new arena.

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The Houston Rockets’ arena downtown is publicly owned but controlled by team owner Tilman Fertitta’s Clutch City Sports and Entertainment group. The home of the American Hockey League’s Texas Stars, in the Austin suburb of Cedar Park, has a capacity of 8,000 that is a little over half the size of the NHL’s smallest current rink (Winnipeg).

“I would be surprised if the NHL would be OK with an expansion team that does not have a new arena,” said Brian Mills, an associate professor at the University of Texas who teaches courses on sports economics and strategy. “The revenue potential with the luxury boxes and the way that they set those up and the money that they like to extract from the local cities is way too large to pass up.”

They are also huge markets. Houston at nearly 2.4 million is the fourth-most-populated U.S. city; Austin at just over 1 million is in the top 12.

“Obviously it makes sense if you’re a sports league to have a franchise in the nation’s fifth-largest metro area and one that is growing rapidly,” said Holy Cross professor Victor Matheson, an expert in sports economics. “Houston obviously makes sense in general as a destination for any league.”

Austin is smaller but has doubled its population since the mid-1990s and has seen an infusion of people over the past five years. Only eight of the NHL’s existing markets are bigger.

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“It’s becoming more and more of a tech city, so I wouldn’t be surprised if there’s more hockey fans here than there used to be,” Mills said. “I would imagine there’s some market for the NHL here in Austin, particularly more than when it was a sleepy, small town capital of Texas 30 years ago.”

History of hockey in Houston and Austin

When hockey was picking up in popularity in the 1960s and ‘70s and the NHL went from six teams to 18, the rival World Hockey Association was founded and Houston got a franchise when the one in Dayton, Ohio, failed to get off the ground.

The Aeros’ inaugural season was in 1972-78, and they were best known for “Mr. Hockey” Gordie Howe playing for them along with sons Mark and Marty. They won four Avco World Trophies as WHA champions before folding.

An AHL team using the same name existed in Houston from 1994-2013. The Texas Stars have played in Austin since ’09.

“There’s some interest of hockey,” University of Houston economics professor Steven G. Craig said. “Houston is full of immigrants from around the country and around the world. And Austin is sort of similar in the sense of a pretty heterogeneous population.”

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Pros and cons of a Houston or Austin NHL franchise

Growing the sport in another so-called non-traditional spot is a big benefit. Smashing successes in places like Las Vegas and Tampa, Florida, show what hockey can do across the Sun Belt when strong ownership is involved.

“Southern cities have been doing pretty well now these days in the NHL: the Lightning and the Panthers,” Mills said of the two teams in Florida. “You’ve got some pretty good hockey teams after some pretty miserable failures with some earlier expansion to the South.”

Abandoning the second try in Atlanta (the Thrashers from 2000-11) was more a failure of ownership than the market. The same could be said in Arizona, where a revolving door of owners led to arena miscues and eventually the Coyotes being sold and moved to Salt Lake City in 2024 to become the Utah Mammoth.

A 33rd team also means 20-23 more NHL players and hopefuls in the minors. The changing landscape of hockey development at the junior and college levels has the potential to churn more talent through the pipeline in North America than ever before, along with players coming from Europe.

“You do have a pretty big pool of players,” Matheson said. “I’m not particularly worried about diluting the talent there because I think there’s a lot of skill.”

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What’s next and where the 34th team may be

After this six-month exploratory phase is complete, recent history suggests a season-ticket drive would be one of the subsequent steps. Ticket drives validated interest that led to the Vegas Golden Knights and Seattle Kraken.

The Board of Governors would need to approve moving forward in the process. No vote has yet been held, though the executive committee supported exploring Houston and Austin.

And while the NHL is comfortable with unbalanced Eastern and Western conferences, getting to 34 teams seems inevitable if it goes to 33. Bettman said the board on Tuesday was updated on situations in Atlanta and Arizona, and it would be no surprise if one of those places got another crack at it.

ere’s everything you need to know about one of the most recognizable trophies in North American sports — The Stanley Cup.

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