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Bill

SB 90

Providing for a property tax exemption from local government levies to the extent of the first $100,000 of appraised value for certain owner-occupied homes and authorizing local governments to propose a ballot question to opt out of such property tax exemption.

2025-2026 Regular Session Introduced by Patrick Schmidt

SB 90 exempts the first $100,000 of owner-occupied home value from local property taxes, allowing communities to opt out via ballot, potentially reducing housing costs while shifting tax burdens and threatening local government revenue.

Died in Committee
#taxation
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WeVote Research Nonpartisan
Bill Summary · SB 90

Legislative bill overview

SB 90 would create a property tax exemption allowing homeowners to exclude the first $100,000 of appraised value from local property taxes on owner-occupied homes. The bill gives local governments the option to propose ballot measures allowing their communities to opt out of this exemption if they choose.

Why is this important

Property tax exemptions directly reduce housing costs for homeowners, potentially making homeownership more affordable. However, this shifts the tax burden to remaining properties and could significantly reduce local government revenue, affecting schools, emergency services, and infrastructure funding—unless communities vote to decline the exemption or the state provides offsetting funds.

Potential points of contention

  • Revenue impact on local services: Schools and municipalities depend on property tax revenue; this exemption could force difficult budget cuts or require the state to compensate localities, raising state taxes or reducing education/public safety funding
  • Equity concerns: Exemptions benefit homeowners but not renters, and wealthier homeowners with higher-value properties receive larger absolute tax reductions, potentially increasing wealth inequality
  • Implementation complexity: The opt-out mechanism creates a patchwork of different tax rates across counties, complicating administration and potentially encouraging tax-base arbitrage
  • Unfunded mandate risk: If the state doesn't fully reimburse lost revenue, localities may struggle to maintain services or could be forced to raise rates on non-exempt properties

Compiled from official sources — confirm details with the bill’s official record.

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