Legislative Session is Over: Property Tax Relief and Much More

The 2025 Legislative Session ended on Monday, June 2nd, and we are hearing that we may be called back for a special session in July. 

We accomplished a great deal, and that is due in part to a very strong relationship between Lt. Governor Dan Patrick and House Speaker Dustin Burrows. With both chambers working on shared common goals, we were able to accomplish almost all of our major objectives. Were some things left undone? Of course. I’ve never served in a legislative session where I got everything I wanted. But I am very proud of some of our key, substantive wins:
 
Property Tax Relief: We allocated more funds for property tax relief than ever before, with nearly 1 of every 4 dollars from our state budget earmarked towards property tax relief. With a $200,000 homestead exemption for those over 65, an average senior will pay no property taxes on the school district portion of their tax bill. (See more details in the next section).  
 
DOGE/Major Government Reform: Inspired by President Trump’s efforts at the national level, Texas passed SB 14, our own DOGE (Department of Government Efficiency) package. Though Texas is an economic and job creation powerhouse (the 8th largest economy in the world), we have issues to address in the regulatory environment. SB 14 seeks to provide a major overhaul of regulations to better serve taxpayers. I was privileged to carry this priority bill in the Senate at Lt. Governor Patrick’s request.
 
Ensuring Water for the Future: We simply can’t overlook the need to better prepare our state for future growth, and that means providing for our long-term water supply. With SB 7 and HJR 7, we earmarked $2.5 billion to jump start a new water fund, and in November voters will have the chance to vote on providing a long-term funding source of $1 billion per year for the next 20 years. In terms of critical significance and importance, I view this undertaking as similar to building the U.S. Interstate Highway system.
 
Improving the Electric Grid: We made significant progress in passing SB 6, which I authored to upgrade grid reliability and security. Our efforts have received national attention, as Texas is leading the way in preparing for the enormous demands created by the explosion of AI and data centers.
 
Stopping Lottery Corruption: It was shocking to learn that organized crime had infiltrated the Texas Lottery. As a result, we shut down the Texas Lottery Commission, transferred oversight to the Texas Department of Licensing and Regulation, and implemented new safeguards to ensure transparency and integrity in the operation of the lottery. 
 
Throughout the summer, I will be providing more specific details on legislation we passed covering various subject matters. Today, I begin by providing more detail on SB 4, the major property tax relief package.
  

More Property Tax Relief Passed by Legislature, Ready for Voter Approval

 
When I wrote to you in February, I stated: “With Texas enjoying another budget surplus, I believe we must return those funds to the taxpayers.” I’m pleased to report that with the passage of SB 4, we have passed out priority property tax relief legislation. 

• Raises the residential homestead exemption to $140,000.
• Raises the residential homestead exemption to $200,000 for those over 65 or disabled.
• Provides a $125,00 exemption from the business personal property tax.

Voters must approve this measure in a statewide constitutional election, just as prior increases to the homestead exemption have gone before the voters. In 2023, voters approved an increase in the property tax exemption with 83% support. Amending the constitution makes it much harder for these exemptions to ever be rolled back in the future.
 
You may recall that in 2015, we increased the residence homestead exemption from $15,000 to $25,000. In 2017, the Legislature passed and voters approved increasing the exemption up to $40,000 per homestead. In November 2023, voters approved House and Senate action to raise the homestead exemption to $100,000. 
 
At least two million Texan households are expected to see reduced property tax bills if the proposed exemption is approved in November. As Lt. Gov. Dan Patrick stated, “The average senior homeowner will no longer pay any school property taxes for the rest of their life as long as they live in their home. Homeowners under 65 years old will now see almost 50% of their school taxes cut.”

 
The Governor’s Veto Power: June 22 Deadline

This session over 9,000 bills were filed by members of the House and Senate, and of those about 1,600 were passed. Once the Governor receives a bill, he can sign the bill, veto the bill, or allow the bill to pass without his signature. Gov. Abbott has 10 days to act from receiving the bill or 20 days after the last day of session, if it was within the last 10 days of session. A bill becomes a law the 91st day after final adjournment unless otherwise specified. Constitutional amendments go to the voters for their approval in the following November election. The deadline for Gov. Abbott to veto a bill is June 22. If a bill has not been signed or vetoed by that date, it will automatically become law.

Senate Memorial In Honor of Our Son Josh

On the last day of the session, my family and I were deeply moved by my colleagues in the Texas Senate who presented a memorial resolution honoring our son Josh, who passed away on April 5th. Terry, my daughter-in-law Sarah, Josh and Sarah’s daughter Katie and several more of our family members were present for this occasion.
 
While holding my granddaughter Katie, I was able to share our family’s gratitude during remarks on the Senate floor.  If you would like to watch this memorial recognition, click HERE.

My granddaughter Katie was so well behaved as her Dad was remembered by the Texas Senate. Terry and I were so grateful for this special memorial resolution delivered on the last day of the session.