Voters Bolster Texas Constitution’s Anti-Tax Credentials on Election Day
Share News:
Voters went to the polls on Tuesday in North Texas to weigh in on 17 amendments to the Texas Constitution and a smattering of local propositions and municipal races. There was also a special election for a state senate seat that’s now heading to a runoff. Nevertheless, we’re going to limit ourselves to the constitutional amendments that were at least tangential to real estate.
To sum it up, this go-around was very heavy on tax relief. In fact, there are some cases where entire categories of taxation that aren’t even in existence in Texas were further eschewed by way of enshrining their prohibition in the state constitution.
Every proposed constitutional amendment appears to have passed Tuesday night. Here are the ones having to do with real estate:
Proposition 2 PASSES, prohibiting the state from taxing realized or unrealized capital gains of an individual, family, estate, or trust. Texas doesn’t have a capital gains tax. Now, the electorate will need to amend the state constitution first if they want to adopt one in the future.
Proposition 6 PASSES, prohibiting the state legislature from enacting a law establishing an occupation tax on entities that enter into transactions conveying securities or a tax on certain securities transactions. Texas has some occupation taxes in certain sectors (law, oil and gas well services, etc), but there won’t be one anytime soon for the financial services growing Y’all Street — not without stripping it from the state constitution.
Proposition 7 PASSES, empowering state legislators to create a special property tax homestead exemption for surviving spouses of veterans who die from service-connected disease.
Proposition 8 PASSES, prohibiting the imposition of a “death tax” on decedent’s property or transfer of an estate, inheritance, legacy, succession, or gift. Like capital gains, Texas doesn’t have an estate tax. Now, it’s prohibited by the state constitution.
Proposition 10 PASSES, authorizing a temporary homestead exemption for improvements made to homes destroyed by fire.
Proposition 11 PASSES, bumping the school district property tax homestead exemption for elderly and disabled people up from $10,000 to $60,000 of market value — more relief for vulnerable demographics chafing from swelling home valuations and their corresponding taxes.
Proposition 13 PASSES, increasing the school district property tax homestead exemption from $100,000 to $140,000 of the market value of a home. This was a big agenda item for the Texas Legislature earlier this year, and lawmakers delivered by endorsing the hike and sending it to voters for approval.
Proposition 17 PASSES, authorizes the creation of a property tax exemption for counties along the U.S.-Mexico border to incentivize property owners to allow for the construction of border security infrastructure.
