Title Tip: Vote Saturday, May 7, to Lower Your Property Taxes

There is a small statewide special election on May 7th that would lower Texas property taxes. The ballot includes just two propositions. Both proposed amendments passed during the special legislative sessions in 2021 with bipartisan support from Texas lawmakers.

Proposition 1

This would authorize the Texas legislature to lower property taxes for elderly and disabled Texans by reducing what they pay to public schools. School taxes can typically make up about half of a homeowner’s tax bill.

The proposition asks for voter approval as:

“The constitutional amendment authorizing the legislature to provide for the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed for general elementary and secondary public school purposes on the residence homestead of a person who is elderly or disabled to reflect any statutory reduction from the preceding tax year in the maximum compressed rate of the maintenance and operations taxes imposed for those purposes on the homestead.”

Proposition 2

This proposal would raise the homestead exemption for school district property taxes from $25,000 to $40,000. That would save the average homeowner about $176 on their annual property tax bills.

It reads as:

“The constitutional amendment increasing the amount of the residence homestead exemption from ad valorem taxation for public school purposes from $25,000 to $40,000.”

The Money

It’s always about money. If one or both amendments pass, the state will cover the reduced revenue for school districts. Some estimates say this could cost the state about $744 million for 2024, 2025, and 2026. Other estimates say that the annual cost to the state would be $600 million a year.

The state would draw from a current $4.4 billion surplus to cover the first-year cost. It is unclear where future funding would come from.

There is a lot going on the first weekend in May with Mother’s Day, Cinco de Mayo celebrations, the Kentucky Derby, and a variety of spring activities. Voter turnout is expected to be low. I encourage you to cast your ballot in support of these propositions to help ease the tax burden on Texas homeowners.

The opinions expressed are of the individual author for informational purposes only and not for legal or financial advice.