UPDATE: Texans are heading to the polls today to cast their votes on Proposition 13, a pivotal measure aimed at providing significant property tax relief. If approved, this proposition will increase the homestead exemption from $100,000 to $140,000 for homeowners under 65, with seniors receiving even more relief.
As property values continue to soar in Texas, homeowners are feeling the financial strain. The proposed exemption is designed to alleviate this burden by reducing the taxable value of homes, allowing homeowners to retain more of their hard-earned money. Under the new measure, effective with the 2025 tax bill, homeowners under 65 could see an average savings of $484 on their annual property taxes, according to the bill’s authors.
For Texans aged 65 and older, the exemption will rise to an impressive $200,000, potentially eliminating their property tax liability altogether. This change could significantly impact seniors, as the average home value among this demographic aligns with the exemption amount.
The stakes are high: the proposed tax relief could cost the state nearly $10 billion in general revenue, raising concerns among education supporters about funding for public schools, which rely on property tax revenues. Critics argue that the state must have a solid plan to replace lost funding, while lawmakers have overwhelmingly backed the proposition, responding to constituents’ calls for urgent tax relief.
Historically, property tax changes in Texas require a two-thirds majority in the legislature followed by voter approval, ensuring that tax rates cannot be altered without public consent. This democratic process underscores the importance of the current vote, as lawmakers from both parties recognize the necessity of addressing Texas homeowners’ financial pressures.
Just last year, voters approved an increase in the school-district tax exemption from $40,000 to $100,000, part of a broader $18 billion property tax package. This previous measure alone was projected to save homeowners an average of $700 on their tax bills, highlighting a growing trend in Texas towards aggressive property tax reform.
As Texans make their voices heard today, the outcome of Proposition 13 will be a defining moment in the ongoing battle for property tax relief. With early voting already indicating strong interest, the results may reshape the financial landscape for countless families across the state.
Stay tuned for live updates as results begin to come in, and be prepared for potential implications on homeownership and public school funding as Texas navigates this crucial decision.
