After months of negotiation, Texas Gov. Greg Abbott signed a $12.7 billion property tax relief package, known as Proposition 4, into law in August. But the new law means nothing if voters don’t approve the package Tuesday.
Early voting for Proposition 4 is already underway, but you have until Nov. 7 to cast your ballot. Here’s what Texas homeowners should know.
What is Proposition 4 in Texas?
If approved by voters, Proposition 4 will cut property taxes for Texas homeowners by increasing the state’s homestead exemption and through tax compression. (The idea of compression is to provide more money to school districts so schools can decrease property taxes.)
Here’s how Texas will use the $12.7 billion to implement tax cuts if voters say "yes" to Proposition 4.
- Approximately $6.5 billion will be used to increase the Texas homestead exemption from $40,000 to $100,000 ($110,000 for homeowners 65 and older).
- Approximately $7.1 billion would be sent to school districts, which is meant to reduce the amount of school property taxes districts need to collect.
While Texas has already implemented tax compression, the compression outlined in Proposition 4 is estimated to save homeowners an additional 10.7 cents per $100 valuation ($107 per $100,000 valuation).
When will the tax cuts take effect? If voters approve Proposition 4, Texas homeowners will see savings reflected on their 2023 tax bills, which are due in January 2024.
How to vote on Texas Prop 4 property tax changes
Texans can vote on Proposition 4 now due to early voting. If you don’t want to wait in the polling lines on Election Day, check with your jurisdiction for open polling locations to cast your ballot early. The early voting period runs until Nov. 3. Texans who miss the Nov. 3 cutoff date can still head to the polls from 7 a.m. to 7 p.m. on Nov. 7.
Some homeowners are eligible to mail their votes. However, the deadline for requesting a mail-in ballot in Texas was Oct. 27. If you have already applied to mail in your ballot, the sooner you send it, the better. Mail-in ballots must be postmarked no later than 7 p.m. on Nov. 7 and be received by the county no later than 5 p.m. on Nov. 8 to be considered a valid vote.
