On July 13, the Texas State Legislature finalized a constitutional amendment and adopted implementing legislation designed to lower property taxes before adjourning its second special legislative session of the year. The amendment, which voters will decide on in Nov., would:
- increase the homestead tax exemption from $40,000 to $100,000;
- authorize the state legislature to limit the annual appraisal increase on non-homestead real property;
- exclude appropriations made to increase state education funding from the state appropriations limit; and
- authorize the state legislature to provide for four-year terms for members of the governing body of an appraisal entity in counties with a population of 75,000 or more.
Texas last voted to increase the homestead tax exemption from $25,000 to $40,000 in May 2022. It was approved by nearly 85% of voters. In 2015, Texas voters approved Proposition 1, which increased the homestead exemption from $15,000 to $25,000. It was approved by 86% of voters. Prior to that, Texas voters had last increased the exemption in 1997 with the passage of Proposition 1, which increased the homestead exemption from $5,000 to $15,000. It was approved by a vote of 93.83% to 6.17%.
