Year after year, Texas homeowners deal with rising property taxes along with paying sales and other taxes as they are the ones who shoulder our state's overall tax burden. But Prop 1 is on the ballot in the November 3 elections to finally provide some relief.
Prop 1 is the statewide Homeowner Tax Relief Proposition. Prop 1 will benefit homeowners with immediate and long-term economic relief by raising the homestead exemption and decreasing the school district property taxes homeowners will have to pay.
This past legislative session, I was proud to joint-author this tax relief package giving our hard-working families much-needed tax cuts. Specifically, $1.2 billion in property tax relief will benefit homeowners by raising the homestead exemption from $15,000 to $25,000 and decrease the taxes they will have to pay. Elderly and disabled Texans would see their exemptions increase as well from $25,000 to $35,000.
School districts will be held harmless, meaning that the state will cover the cost of tax relief. The state would send about $1.2 billion to school districts to cover the revenue those districts would have given up from the higher homestead exemptions.
This relief is long overdue. This is the first increase in the homestead exemption from school taxes since 1997. And these savings would be amended into the Texas Constitution and remain there unless future Texas voters chose to take this amendment out.
Another benefit for taxpayers of approving this constitutional amendment is that Prop 1 would prohibit Texas from enacting a real estate transfer tax, or a "home sales tax." Texas does not currently have such a tax, but Prop 1 would prohibit it in the future; and the many other states that do have this tax have found it to negatively impact home affordability.
Prop 1 makes good economic sense and will provide critical tax relief on a statewide level for our Texas families. Taxpayers will be able to keep more of the dollars they earn. On November 3, vote to lower property taxes for all Texas homeowners. Vote YES on Prop 1.