|
Proposition 1: Reducing the limitation on property taxes for a person who is elderly or disabled
Proposition 1 will benefit individuals with an over 65 or disabled exemption on their homestead.
In 2019, HB 3 compressed school maintenance and operation tax rates across the board except for over 65/disabled residents (because their rate was already lower than the new compressed rate). With over 1.8 million "over 65" exemptions and 180,000 "disabled" exemptions, these households will see a $110 reduction the first year and $125 in the second year on average. The reduction will continue to grow every year.
Prop 1 would also hold school districts harmless for lost property tax revenue from the tax ceiling reductions, so there would be no losses to local taxing units.
Proposition 2: Raising the residence homestead exemption by $15,000
Proposition 2 will increase the homestead exemption by $15,000.
If this amendment were to pass, the state homestead exemption for school district taxable value purposes will increase from $25,000 to $40,000. On average, the 5.67 million homesteads in Texas will see a $175 savings in their school district tax bill at the current average statewide school property tax rate.
This flat exemption increase would especially benefit those owners with lower and average property values. Again, the state would ensure that school districts would not see negative fiscal impact due to this change.
|
