AUSTIN, Texas — Texas voters have officially approved lawmakers' $18 billion property tax plan.
Voters had the opportunity to vote on Proposition 4, an amendment to the Texas Constitution, in the Nov. 7 election. Now that the proposal has been approved, homeowners will begin seeing tax savings in their 2023 tax bill.
The ballot language for Prop 4 was long, but it could be broken down into five sections.
The first part was the temporary limit on appraisal values of non-homestead properties. Now that the plan has passed, for three years, the taxable value of all property that is not someone's place of residence can't increase by 20% as long as the property is valued at $5 million or less.
The second part of the plan increases the homestead exemption on school district taxes from $40,000 to $100,000. It is estimated to save the average homeowner around $1,200 per year and eliminate school M&O taxes for some homeowners in nearly 400 school districts across the state, as their home values are at $100,000 or less.
The third part was related to seniors and the disabled, ensuring that they will benefit from the tax cut. In May 2022, voters approved a tax cut for the elderly and disabled, but some people didn't receive any savings because of how the law was written. This part of the approved plan will correct that error and make sure seniors benefit from the increased homestead exemption.
The fourth part was related to tax rate compression. To pay for the $18 billion plan, the state has to spend more money on schools. However, the Texas Constitution limits the amount of money the Legislature can spend each session. This section allows the Legislature to pay for the tax relief without it counting towards the spending cap.
Finally, the last part of the plan expands the appraisal district board of directors in large counties. Counties with a population greater than 75,000 people will now be able to elect three members of the board who will work with five appointed members. The elected members will serve four-year terms.
The provisions in Proposition 4 were a package deal, so voters were not able to decide on which sections of the constitutional amendment they supported.
For the latest election results, head to KVUE.com/elections.