TEXAS, USA — Property owners in Texas could soon see the biggest tax relief in history, but to be able to receive a big part of the proposed tax cuts, you're going to have to turn out to vote in November.
Governor Greg Abbott signed off on the $18 billion package for property tax cuts in July, but each part didn't automatically go into effect.
It's already in effect for small businesses who will save through the franchise tax code. The tax bills you receive in October will also automatically reflect the 20-percent appraisal cap and school district's M&O tax rate compression.
The bill you receive from your local tax office will also reflect the increase of the homestead exemption.
"We'll be sending out our new tax bills as the legislation set forth to tell us to send them with the new $100,000 homestead exemption on it," said Billy White, the chief appraiser for Bell County. "So we'll be sending those tax bills out in October with that number on it. We're trying to figure how to make sure that all works correctly with the way the legislature set forth for us to do so."
Lawmakers agreed to raise it from $40,000 to $100,000. However, for it to be in effect, lawmakers are requiring Texans to vote on it.
It has to be passed by voters because lawmakers wanted any changes to the bill in the future to have to be approved by voters first and so that it couldn't count against spending limits in the state budget, that's according to the Texas Tribune.
White said they have been told to assume voters will pass the homestead exemption increase, but if it fails, his office will be sending out supplemental bills.
The chief appraiser said you should expect major savings on the bill you receive in October from your appraisal district.
"It could be hundreds of dollars or thousands of dollars depending on the value of your home, your homestead that's been there and how much your school district actually changes their tax rates depending on the calculation," White explained.
Lawmakers project that you could save around $1,300 per year on property taxes, but your exact savings are unclear until the taxing entities decide what they'll charge you.
"It's gonna be a big savings for property owners," White said. "The question of how much -- we won't know until we get to the tax rate set."
White told 6 News that taxing entities are starting to begin setting their tax rates and they will have hearings in the next few weeks.