State of Texas Proposition 2: The constitutional amendment increasing the amount of the residence homestead exemption from ad valorem taxes for public school purposes from $25,000 to $40,000.
Currently, homeowners are able to reduce the market value of their primary residence by $25,000 when calculating their annual school property taxes. The proposed amendment would increase the amount of that reduction to $40,000. This could lower homeowners’ annual property tax bills.
The law related to this proposed amendment requires that the state reimburse school districts for revenues lost due to this proposition.
- This amendment would save homeowners money in the form of property tax relief.
- This proposition should not impact public school revenues because the state would be required to make up any shortfall.
- This decrease in property taxes would particularly help low to moderate- income homeowners.
- The proposed amendment could reduce public school revenues if the formulas put in place by the state do not fully reimburse the local school districts for the losses.
- This property tax reduction will end up costing the state money if they reimburse lost revenue to school districts. The cost to the state will depend on the laws passed to make up any shortfall.
- The proposed amendment does not benefit those who are not homeowners, including renters who send their children to public schools.