Senator Nelson Files Tax Relief Bills
February 24, 2015
Texas State Senator Jane Nelson, R-Flower Mound, today filed SB 1 and SB 7, together providing approximately $4 billion in tax relief during the 2016-2017 biennium. SB 1 raises the homestead exemption to 25 percent of the home median market value. SB 7 reduces the state's business franchise tax rate by 15 percent.
"Because of our economic success, we have more than enough revenue to both meet our needs and provide for tax relief. Every dollar the government takes is a dollar that someone has earned, and so we have an obligation to return some of those dollars to taxpayers whenever possible," said Senator Nelson.
"I am pleased to support one of the largest and most significant tax relief packages in the history of Texas," said Texas Lieutenant Governor Dan Patrick. "These reforms will provide immediate and lasting economic relief to both homeowners and businesses. We worked closely with Senator Nelson over the last four months and I appreciate her leadership on this issue. I strongly support Senate Bill 1."
SB 1 includes nearly $2.5 billion in property tax relief by setting the homestead exemption to 25 percent of the state's home median market value. For FY2016, the median home market value is projected to be $134,500, resulting in an exemption of $33,625. For FY2017, the projected value is $143,915, so the exemption would be $35,979. In future years, SB 1 provides that the exemption will rise or fall along with property values in the state. This will be put before voters under SJR 1, also filed by Senator Nelson today. SJR 1 also constitutionally prohibits the establishment of any tax on real estate sales.
SB 7 provides $1.5 billion in business tax relief by reducing the business franchise tax rate, also known as the margins tax, by 15 percent.
Senator Nelson introduced the bills during a press conference today. To view the press conference, please visit the Texas Senate's website.