Texans Approve Proposition 4, Allowing State to Spend $18 B on Property Tax Cuts

Ballots are in, and it’s no surprise that Texans overwhelmingly approved Proposition 4. The Texas constitutional amendment allows the state to spend $18 billion on property tax cuts for homeowners and businesses and cut school districts’ tax rates.

About 2.26 million Texans showed up at the polls Tuesday, and Proposition 4 garnered 83.82 percent of the vote or about 1.9 million ballots.

In Dallas County, Proposition 4 netted 80.13 percent of the vote, or 132,573 ballots.

Early voting totals showed that 62,157 residents cast early ballots in Tarrant County, followed by 59,652 in Dallas County, 46,906 in Collin County, and 46,156 in Denton County.

Sen. Paul Bettencourt, R-Houston, who authored the bill related to Proposition 4, announced victory in an emailed statement to the Austin American-Statesman about 30 minutes after the polls closed Tuesday night.

“As I predicted, Proposition 4 was passed tonight by a supermajority of voters because of the State’s surplus they will see eye-popping savings!” Bettencourt’s email stated.

Proposition 4 took a strong lead among early voters in Dallas County, with 81 percent casting ballots in favor of the measure. Statewide, about 83 percent of early voters cast ballots in favor of Proposition 4.

Texans approved 13 of the 14 Constitutional amendments on Tuesday’s ballot, voting against raising the mandatory retirement age for judges. View the unofficial results on Texas constitutional amendments here.

Proposition 4

Proposition 4 raises the homestead exemption, the portion of a home’s value that can’t be taxed to pay for public schools. It also temporarily limits appraisals for commercial, mineral, and residential properties that don’t receive a homestead exemption and are worth less than $5 million, Compass Realtor Heather Guild explained in a Friday newsletter ahead of Election Day on Tuesday. 

A four-minute podcast on Proposition 4, prepared by Allegiance Title Company’s Blair Raggio, breaks down the proposition. 

The average homeowner will save about $1,300, and the legislation is retroactive for 2023 property taxes, Raggio said. 

“It is important that buyers and sellers know that their tax bill may actually be less than what it was prorated on for their 2023 taxes,” she said. 

According to a property tax calculator prepared by CBS News North Texas, the owner of a $500,000 home in Dallas ISD will save about $1,226.24 in property taxes. The estimate only takes into account the homestead exemption and school tax compression. Homeowners may apply for other exemptions.