When Texas lawmakers announced in August that the House and Senate finally reached an agreement on the largest property tax cut in Texas history — to the tune of $18 billion — residents of the Lone Star State weren’t quite ready to do a victory dance.
Perhaps that’s because they knew they’d still have to vote on a statewide tax reform package on Nov. 7 before it becomes law. They also know that their tax bills continue to rise, despite a rate decrease approved by the Dallas City Council last month, because of rising property appraisal values.
If approved, Proposition 4 would authorize the legislature to:
- Establish a temporary limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes.
- Increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads from $40,000 to $100,000.
- Adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts.
- Except certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
- Authorize the legislature to provide for a four-year term of office for a member of the board of directors of certain appraisal districts.
For voter registration information, polling places, or to view a sample ballot, visit dallascountyvotes.org.
Stay tuned to daltxrealestate.com for election results and reactions after the polls close Nov. 7.
What Proposition 4 Means to Taxpayers
The Texas Tribune outlined all 14 propositions on the November ballot in a Sept. 15 report, noting in a synopsis of Prop 4 that Texas has some of the highest property taxes in the country.
“The package would send $7.1 billion to school districts so they can lower their property tax rates,” writes Texas Tribune reporter Joshua Fechter. “School district taxes make up the bulk of a Texas property owner’s tax bill. The amendment would also raise the state’s school district homestead exemption — or the slice of a home’s value that can’t be taxed to pay for public schools — from $40,000 to $100,000, at a cost of $5.6 billion.”
The amendment also includes other tax reforms, including a temporary limit on appraisals for commercial, mineral, and residential properties that don’t receive a homestead exemption that are worth less than $5 million, according to the Texas Tribune report.
“If voters approve the idea, appraisal districts could not raise the taxable value of those properties by more than 20 percent each year for the next three years,” Fechter writes. “The limit would expire in 2026 unless lawmakers and voters decide to extend it. The amendment would also expand the pool of businesses that don’t have to pay the state’s franchise tax — and allow voters to elect three members to their local appraisal district’s board of directors, which are currently appointed.”
Fourteen Propositions For Texas Voters
In addition to Proposition 4, the following items are on the statewide ballot.
Proposition 1 – HJR 126 “The constitutional amendment protecting the right to engage in farming, ranching, timber production, horticulture, and wildlife management.”
Proposition 2 – SJR 64 “The constitutional amendment authorizing a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility.”
Proposition 3 – HJR 132 “The constitutional amendment prohibiting the imposition of an individual wealth or net worth tax, including a tax on the difference between the assets and liabilities of an individual or family.”
Proposition 5 – HJR 3 “The constitutional amendment relating to the Texas University Fund, which provides funding to certain institutions of higher education to achieve national prominence as major research universities and drive the state economy.”
Proposition 6 – SJR 75 “The constitutional amendment creating the Texas water fund to assist in financing water projects in this state.”
Proposition 7 – SJR 93 “The constitutional amendment providing for the creation of the Texas energy fund to support the construction, maintenance, modernization, and operation of electric generating facilities.”
Proposition 8 – HJR 125 “The constitutional amendment creating the broadband infrastructure fund to expand high-speed broadband access and assist in the financing of connectivity projects.”
Proposition 9 – HJR 2 “The constitutional amendment authorizing the 88th Legislature to provide a cost-of-living adjustment to certain annuitants of the Teacher Retirement System of Texas.”
Proposition 10 – SJR 87 “The constitutional amendment to authorize the legislature to exempt from ad valorem taxation equipment or inventory held by a manufacturer of medical or biomedical products to protect the Texas healthcare network and strengthen our medical supply chain.”
Proposition 11 – SJR 32 “The constitutional amendment authorizing the legislature to permit conservation and reclamation districts in El Paso County to issue bonds supported by ad valorem taxes to fund the development and maintenance of parks and recreational facilities.”
Proposition 12 – HJR 134 “The constitutional amendment providing for the abolition of the office of county treasurer in Galveston County.”
Proposition 13 – HJR 107 “The constitutional amendment to increase the mandatory age of retirement for state justices and judges.”
Proposition 14 – SJR 74 “The constitutional amendment providing for the creation of the centennial parks conservation fund to be used for the creation and improvement of state parks.”
The deadline for voter registration is Oct. 10. Early voting begins Oct. 23.
