Politics
Senate Bill 301 Property Tax Relief and Amarillo Household Expenses
The measure directs state funds to local tax authorities in Potter and Randall counties starting in the 2027 fiscal year.
How we reported this
Texas Senate Bill 301, enacted on June 15, 2026, allocates state revenue to offset residential property tax assessments in Amarillo and other Texas cities. The legislation targets school district and county levies that make up the bulk of local bills mailed to homeowners each October.
Why the change arrives now
State lawmakers approved the bill during the regular session after the comptroller reported a $12.8 billion surplus in general revenue for fiscal year 2025. Potter County appraisal records show median home values in Amarillo rose 9 percent between 2024 and 2025, pushing many fixed-income households above the $60,000 annual income line used for existing circuit-breaker programs.
Under the new formula, the state will reimburse school districts for a portion of lost revenue when they lower the maintenance-and-operations rate by at least 5 cents per $100 of valuation. City of Amarillo budget documents list 42,800 residential parcels that would qualify for the adjustment in the first year.
Local advocates note that a typical Amarillo homeowner paying $3,200 in annual property taxes could receive a $380 credit on the 2027 bill if the school district adopts the full rate cut. The credit applies only to the homestead portion and does not affect commercial or rental properties.
Implementation timeline
The Texas Education Agency will publish reimbursement guidelines by September 1, 2026. Randall County tax assessor-collector offices expect to mail revised statements to Amarillo addresses in October 2027, reflecting the first round of state payments. School boards in Amarillo ISD and Bushland ISD have scheduled public hearings for January 2027 to decide whether to accept the state match.
Policy analysts say households that already receive the over-65 or disabled-veteran exemptions will see the credit applied after those reductions, while renters may experience indirect effects if landlords pass along lower carrying costs through lease renewals in 2028.