Texas voters overwhelmingly support tax relief for homeowners

Translate this page
The Texas flag waving in the wind.

11/04/2015 | Author: Editorial Staff

Thanks to strong support from the Texas Association of REALTORS®, statewide Proposition 1 passed with 86% of the vote. This resounding victory will save the state’s current and future homeowners money in two ways:

  • The homestead exemption will increase from $15,000 to $25,000, reducing homeowners’ property-tax burden.
  • Passage of this proposition also means real estate transfer taxes are constitutionally prohibited, which saves consumers money when they buy or sell property.

Thanks to all REALTORS® for spreading the word about the importance of this ballot item.

In addition, statewide Proposition 7, which the Texas Association of REALTORS® also supported, passed with 83% of the vote. Proposition 7 will help provide long-term transportation solutions by allocating a portion of sales and use tax revenue to the state highway fund through 2032. 

Categories: Meetings, Governmental Affairs
Tags: political affairs, proposition 1, proposition 7


Comments

Jarod Marcus on 08/03/2016

Mr. Parker-  If your assessment has only gone up 25% over 5 years, then you are one of the lucky ones.  If you are a senior on a fixed income, you should be looking forward to claiming your senior exemption when you turn 65.  That will freeze your assessment, AND it gives you an option of breaking up your tax bill into 4 payments annually.  If you choose, you can even DEFER your tax bill as long as the home remains your homestead (interest DOES accrue though).  If you need help in filing for your exemption, simply call your local appraisal district or your trusted Realtor.

James Parker on 08/03/2016

Has anyone thought about a California proposition 13 effort. My property tax bill has increased 25% over the last 5 years due to property tax and valuation increases. If this keeps up I’ll will be forced to sell being retired and on a fixed income. Feel posting my email address.

Jarod Marcus on 11/08/2015

Proposition 1 was a great win for Texans!  The small tax savings for homeowners is a nice thing, but the banning of a transfer tax is HUGE!  I sure wouldn’t want to show my sellers a net proceeds estimate, and have to explain where several thousands of dollars are going for an unexplainable tax, that would likely be used for some kind of government pork.  Everyone concerned about the “lost” school tax revenue is failing to consider there is far more property tax coming from non-homestead property (commercial, rental, industrial, etc.).  The $120-$150 per year, per household, will be absorbed when the districts raise the tax rates next year., and will be shifted to businesses that own their property.

Kelli Owens on 11/07/2015

Although I am thrilled with the increase in the homestead exemption, I feel the major part of this win is the removal of the transfer tax discussion that kept creeping up.  We pay plenty of money annually for our homes, we shouldn’t have to pay additional tax just to sell it.

THAT is the big winner of this election.

Pam DeVore on 11/07/2015

What I don’t like is the taxes paid into the school district and that district doesn’t spend it properly and our kids don’t get The education we are paying for.
There should be tax relief for your school district doesn’t achieve certain requirements.

Dan Cornelius on 11/06/2015

Let’s be real now people. Prop 1 only reduced the property taxes by $300 ( using a 3% tax rate). The real problem is the RATE of INFLATION, your property taxes can increase up to 10% annually.  Let’s consider an example of this: assume a $300,000 - $15,000 homestead = $285,000 and with a property tax rate of 3% = $8,550.  Even with a homestead of $25,000 reduces the value to $275,000 and at 3% = $8,250, which is $300 less. It’s outrages that our property taxes are even this high (1% max).
Here’s my point, the following tax year, your property tax can go as high as 10% or $825 + $8,250 = $9,075.  This is unbelievable and whoever suggested voting for a bond makes no sense and isn’t looking at their tax bill.  STOP THE BOND MEASURES AND LOWER THE TAX RATE INCREASES. Tell your city to stop buying NEW vehicles. That’s my tax money ya’ll are spending!

Ali Arabani on 11/06/2015

Excellent job by realtors and thanks to every one who voted. I think the other 14% Got confused with the language of proposition.

Mariangel Wilkinson on 11/05/2015

To Oscar Vaca:
Aha! however Property Taxes are tax deductible and Sales Tax is NOT! You are gonna pay it one way or the other.  And you pay for the schools in your area; If you want better schools, pass more school bonds!!!!

OSCAR VACA on 11/05/2015

THE TAXING ENTITIES HAVE ALREADY WIPED OUT THE INCREASED DEDUCTION BY INCREASING THE HOME VALUES ACCORDINGLY.  WHEN ARE WE GOING TO REALIZE THAT TAXING REAL ESTATE ACTUALLY REDUCES THE VALUE OF ANY PROPERTY BECAUSE OF THAT BURDEN THAT IS THERE UNTIL ONE REACHES 65 YEARS OF AGE.  THE TAX IS NOW BECOMING A SIGNIFICANT PART OF THE MONTHLY PAYMENT FOR PROPERTY OWNERS.  WHEN ARE WE GOING TO CHANGE THE WAY WE SUPPORT THE EDUCATIONAL SYSTEM IN LIEU OF PROPERTY TAXES TO ALLEVIATE THE TAX BURDEN?  WHY NOT A SALES TAX ACROSS ALL SPENDING LEVELS THAT IS EASIER TO PAY INSTEAD OF THOUSANDS OF DOLLARS AT THE END EACH YEAR FOR HOMEBUYERS AND HOMEOWNERS?  EVENTUALLY FEW PEOPLE WILL BE ABLE TO KEEP THEIR PROPERTIES DUE TO TAX BURDENS THAT DON’T END.  WE NEED TO CONSOLIDATE SCHOOL DISTRICTS TO ECONOMIZE AND FIND WAYS TO EDUCATE OUR CHILDREN MORE EFFICIENTLY.  SOME SCHOOLS LOOK LIKE PALACES FROM THE FAR EAST AND WE PAY FOR ALL THAT.

Mariangel Wilkinson on 11/05/2015

It is interesting to note that the overwhelming majority of Texans want smaller government. When, what was it? 86%, vote to decrease taxes that is what it translates into. 86% of Texans are in favor of less money going to government.  The state will have to figure out how to operate on less, just like we do when income is down. I think we have the legislature and governor’s office that have the will to make that happen. This was great legislation to help homeowners and particularly on the resale of their home. No longer will the State Legislature try to impose a transfer tax virtually every session, TAR will no longer need to fight that battle every 2 years and can spend money on other issues.

DIANA ALDERMAN on 11/05/2015

I appreciate all of the support that TREPAC provides to not only Realtors but our Texas Homeowners.  Even if the Homestead increase is small, it is better than we have ever had in the history of the state.  The most important part of the amendment is the prevention of a sales tax on a Homestead.  This one factor alone makes our state even more attractive to future residents who are looking for a reasonable state in which to reside.  We can now boast that not only do we not have a State Income Tax, we also do not have a State Sales Tax on a Homestead.

Shad Bogany on 11/05/2015

Job well done and I appreciate LT and LMT and Govt. affairs taking on taxes and winning.  I believe all Texans will benefit including 14% that did not vote for it.

Andra Beatty on 11/05/2015

Congratulations to Texas Homeowners for Stepping up and Voting in this typically low turnout voter election.  Thank you to Dan Patrick and Texas Association of Realtors for the great YouTube videos that we were able to post on multiple social media sites and email out to our friends, family and clients.  The Prop 1 language was difficult for many people to understand and with Brandon’s Power Point Presentation and help dissecting it into 4 parts made it easy for more people to understand.  It also allowed us as Realtors to have informed and logical discussing in person and on social media with others who did not have all the facts.  Thank you to our great state senators and legislators who made this possible also spread the news to vote yes on Prop 1.  Thank You! Thank You!

Candy Cargill on 11/05/2015

A big congratulations first to Texans for getting out to vote,  our Govenor, Lt. Govenor, our Senators, Representatives and our wonderful Gov. Affairs Team.  Proves what grass roots can accomplish, again!

Scott Robinson on 11/04/2015

Well I believe the Texas Lottery will still be around for education funds. Plus we still have to pay school district taxes. I’ll take the small savings.

Scott Billingsley on 11/04/2015

Not too long ago, the San Antonio Express News took the stance that this was not worthy of voting for.

Today, they put it in the category as a “silly” proposition.

Well, 86% of Texas voters said this wasn’t “silly” to them.

Texas voters want to cut property taxes and effectively income taxes that the other 14% want to impose.

Christine Rollins on 11/04/2015

This is a typical Texas political two step for the citizens of Texas. Let’s take a good law (transfer taxes) and partner it with a bad law (measley property tax savings) to insure passage. That *whopping $125 tax savings the average homeowner will see in 2015 will be gone by 2017 when the legislature will no longer “make up” the 1.2 BILLION dollar SHORTFALL to the school districts. Unless our legislators are going to magically start manufacturing money this is going to bite the taxpayers square in the ass in the next two years.

Bob Leonard on 11/04/2015

Congratulations to all at TAR for the continued support of the people of Texas!  This kind of lopsided victory makes a terrific statement!

Tom Morgan on 11/04/2015

Congratulations to Texas REALTORS for once again standing up for private property rights and fair real estate taxation!


Leave a Comment

Read our commenting policy



advertise with us

Legal disclaimer

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

Advice for REALTORS®

Does a seller always have to provide the lead-based paint addendum to a buyer?

Can you name these interior home features?

What you don’t know about Texas license holders

How to talk to your clients about student debt

Subscribe

More advice for REALTORS®