Governor Greg Abbott announced Monday that he would call a special session of the Texas Legislature beginning January 12 focused on property tax relief for homeowners, citing rising appraisals in Texas’s major metropolitan areas and mounting pressure from constituents and conservative advocacy groups who have demanded that state leaders do more to address affordability concerns.
The special session announcement came after months of negotiations between the governor’s office, the Texas House, and the Texas Senate failed to produce consensus on a property tax package during the regular legislative session that concluded earlier this year. Abbott said Monday that the January session would be narrowly focused on a homestead exemption increase and a mechanism to limit annual appraisal growth on primary residences.
“Texas homeowners are being squeezed,” Abbott said at a press conference at the Capitol. “The value of their homes has increased dramatically, and while that’s a good thing in many ways, it also means their property tax bills have gone up substantially. It is time for the state to provide real, lasting relief to the families who are the backbone of our communities.”
The governor’s proposal would increase the homestead exemption from its current level to $150,000, a change that would exempt a larger portion of a primary home’s value from school district property taxes, which make up the majority of most Texas homeowners’ tax bills. The proposal also includes an appraisal cap that would limit annual increases in assessed value for homesteaded properties to five percent, regardless of actual market appreciation.
The Lt. Governor Dan Patrick, who presides over the Texas Senate, said the upper chamber was prepared to act quickly on property tax relief and signaled support for the governor’s framework. “Texas taxpayers have been patient. The Senate is ready to deliver real property tax cuts when we convene in January,” Patrick said.
Texas House Speaker Dade Phelan expressed general support for the session but indicated that House members had their own priorities and would want to negotiate on the specific parameters of both the exemption increase and the appraisal cap. Some House members have argued that appraisal caps unfairly benefit owners of high-value properties at the expense of newer and lower-income homeowners.
School districts expressed concern about the fiscal impact of an expanded homestead exemption, noting that reduced property tax revenue flowing to school budgets would need to be replaced with state funding — ultimately shifting the tax burden rather than eliminating it. The Texas Association of School Boards said it would monitor the session closely and advocate for adequate education funding.
Critics on the left said the proposals would disproportionately benefit wealthier homeowners and do little for renters, who make up a significant and growing share of Texas’s population. “Property tax relief is a real issue, but if we’re going to address affordability, we can’t just focus on homeowners,” said State Representative Chris Turner of Grand Prairie. “Renters are struggling too, and most of these proposals don’t help them at all.”
The special session was expected to last between two and four weeks, with the specific agenda to be formally announced closer to the start date. Legislative observers said the compressed timeline and focused agenda increased the likelihood of passage but noted that inter-chamber disagreements on specifics could complicate and extend negotiations.
