Update: Texas Voters Approve Historic $18 Billion Property Tax Relief Act, Proposition 4, in November 7, 2023 Election.
By Natalie A. Maloney | November 9, 2023
1. Homestead exemption increased from $40,000 to $100,000;
2. 20% “circuit breaker” cap limits the increase of appraised value on commercial real property:
a. 3-year pilot program, 2024 to 2026;
b. 20% cap applies to appraised value of non-homestead real property valued at not more than $5 million;
c. $5 million limit to be adjusted annually, up or down, based on consumer price index;
d. 20% cap does not cover value of new improvements (some exceptions for replacement of imps due to disaster/damage);
e. School district tax rate compression – school district maximum compressed tax rate reduced by $0.107 for 2023-2024 school year, state will send billions to schools to make up the difference (applies to maintenance & operations rate, largest part of most tax bills, pays for teacher salaries, school building maintenance) (amendments to Education Code.
3. Appraisal District Board of Directors, 3 Elected – in populous counties over 75k – change from 5 members appointed by taxing units to 9 members, 5 appointed, 3 elected by majority vote at general election in the county, and assessor-collector; staggered 4-year term limits. BODs are responsible for appointing chief appraisers, who serve at their pleasure.
Proposition 4 on the ballot, known as Senate Bill 2, passed by an overwhelming majority. After an estimated 99% of votes were counted, 83% voted YES.
To review the Text of SB2, click the following link: 88(2) SB 2 – Enrolled version (texas.gov).
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