America's Property Tax Advisor

Texas Property Tax Amendments Pass


Texas voters overwhelmingly approved two constitutional amendments on May 7 that economists say will slow down the growth of residential property taxes. The measures provide no tax relief for businesses and industries.


Proposition 1 will adjust, and lower property taxes paid for public schools by homeowners 65 and older and those with a disability starting in 2023. It also lowers their school property tax bills year-after-year.


Proposition 2 will raise the homestead exemption for school property taxes from $25,000 to $40,000 beginning this year. The exemption reduces the taxable value of a homeowner’s primary residence.


Holding the Line on High Bills


Texas homeowners’ property tax bills are among the highest in the nation. It’s the result of the state’s reliance on property taxes to finance schools and public governments, along with the lack of a state income tax.


Measures are already in place to try and slow property tax growth. Under state law, the taxable value of an owner’s primary residence can’t increase more than 10% in a given year if they have a homestead exemption.


State legislators capped school district tax rates three years ago. Now, cities and counties that want to raise their total tax revenue by 3.5% or more than the previous year must get voter approval.


Public Schools Will Not Suffer


The passage of these constitutional amendments will not cut overall tax revenue going to schools. Districts are guaranteed a certain dollar amount of funding per student based on school finance formulas.


Texas currently has a $12 billion budget surplus. The state will make up the difference, so it won’t result in a revenue loss to schools.