Texas Proposition 4
Texas Proposition 4, Property Tax Changes and State Education Funding Amendment (2023)
A Vote “Yes” supports amending the state constitution to:
- 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
- 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.
A vote “No” opposes this constitutional amendment.
You can dive deeper into each of these topics below.
Homestead tax exemption increase
The amendment would increase the homestead tax exemption from $40,000 to $100,000. The increased exemption would apply to the tax year beginning on or after January 1, 2023.
Non-homestead real property appraisal limit
The amendment would also authorize the state legislature to limit the annual appraisal increase on non-homestead real property to the lesser value between the property’s most recent market value as determined by the appraisal entity or 120% (or a higher percentage) of the appraised value from the previous tax year The amendment would also authorize the state law to pass laws prescribing additional eligibility requirements for the limitation on appraised values. The appraisal limit would apply to either the effective date of the law imposing the limitation or January 1 of the tax year following the first tax year of ownership, whichever is later. This subsection of the amendment would expire on December 31, 2026.
Property tax limits on homesteads owned by elderly or disabled residents
The amendment would require the state legislature to provide for a reduction in the amount of the limitation on property taxes on homesteads owned by elderly or disabled residents in an amount equal to $15,000 multiplied by the 2022 tax rate for general elementary and secondary public school purposes. Beginning with the 2023 tax year, if the general school district residence homestead exemption amount for a married or unmarried adult (including those living alone), or the exemption amount for a person who is elderly or disabled, is increased in any tax year, the legislature would be required to implement a reduction for that year as well as subsequent years in the limitation amount provided by the tax ceiling for residence homesteads that were subject to the limitation in the preceding tax year. The amendment would require the reduction to be equal to the increased exemption amount multiplied by the tax rate for general elementary and secondary public school purposes applicable to the residence homestead for the tax year in which the exemption amount is increased. This would apply to tax years beginning on or after January 1, 2023.
Excluding additional state education funding from appropriations limit
The amendment would also exclude the appropriations of state tax revenue for the purposes of paying for ad valorem tax from the constitution appropriations limit.
Appraisal board governance
The amendment would also authorize the state legislature to pass laws related to the governing board of an appraisal entity in a county with a population of 75,000 or more.
Learn more about Proposition 4 Here.
We encourage everyone to do their research and always vote for what is best for you and your family.
Texas Proposition 4