Texas Proposition 4, Property Tax Changes and State Education Funding Amendment (2023)
| Texas Proposition 4 | |
|---|---|
 | |
| Election date November 7, 2023 | |
| Topic Taxes | |
Status Approved | |
| Type Constitutional amendment | Origin State legislature |
Texas Proposition 4, the Property Tax Changes and State Education Funding Amendment, was on the ballot in Texas as a legislatively referred constitutional amendment on November 7, 2023.[1][2]The ballot measure was approved.
A "yes" vote supported amending the state constitution to:
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A "no" vote opposed this constitutional amendment to increase the homestead property tax exemption; authorize the state legislature to limit the annual appraisal of non-homestead real property; and exclude increased state education funding from the appropriations limit. |
Election results
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Texas Proposition 4 |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
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2,121,784 | 83.44% | ||
| No | 421,177 | 16.56% | ||
Overview
What property tax changes did Proposition 4 enact?
- See also: Measure design
Proposition 4 increased the homestead tax exemption by raising it from $40,000 to $100,000. This proposed change applied to the tax year commencing on January 1, 2023. The amendment authorized the state legislature to limit the annual appraisal increase for non-homestead real properties. This limitation would be contingent upon the lesser of the property's recent market value as evaluated by the appraisal entity or 120% (or a potentially higher percentage) of the previous tax year's appraised value. The amendment enabled the state legislature to introduce laws outlining supplementary eligibility prerequisites for this appraised value limitation, which would be effective either upon the law's enactment or from January 1 following the initial year of property ownership, depending on the later date. This subsection of the amendment would expire on December 31, 2026.[2]
The amendment required that the state legislature incorporate a reduction in the limitation on property taxes for elderly or disabled homeowners with homesteads. This reduction equates to $15,000 multiplied by the 2022 tax rate designated for general elementary and secondary public school objectives. Commencing from the 2023 tax year, if there are changes in the general school district residence homestead exemption for various categories of residents, the legislature must implement reductions in the limitation amount for those homesteads subject to the prior year's limitation. The reduction should be proportional to the changed exemption and the applicable tax rate for public school purposes. Proposition 4 authorized the state legislature to enact laws concerning the governing board of an appraisal entity in counties with populations exceeding 75,000. The amendment excluded state tax revenue appropriations for ad valorem tax payments from the constitutional appropriations limit.
How did the amendment get on the ballot?
- See also: Path to the ballot
After the state legislature did not pass a property tax amendment during the 2023 regular legislative session. Gov. Greg Abbott (R) called for a special session on May 29 to address property taxes. Nine amendments were proposed but none were passed. Abbott called for a second special legislative session on June 27 where Proposition 4 was introduced as House Joint Resolution 2 on July 10, 2023. It passed in the House by a vote of 132-5 with 13 absent on July 13. HJR 2 passed in the Senate on the same day by a vote of 31-0.
After it passed, Abbott (R) said, "The Texas House and Senate fulfilled our promise with an agreement that delivers a comprehensive, long-lasting solution to increasingly burdensome property tax bills. I thank my partners in the Texas Legislature for coming together to honor the best interests of hardworking Texans who want to own their property—not rent it from the government."[3]
Have Texans increased the homestead property tax exemption before?
- See also: Homestead exemption increases in Texas
Ballotpedia tracked three homestead exemptions passed in Texas since 1997. In May 2022, Texas voters approved an an amendment to increase the homestead exemption from $25,000 to $40,000. In 2015, Texas voters approved Proposition 1, which increased the homestead exemption from $15,000 to $25,000. 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. They were all approved with at least 84% of the vote.
Measure design
- See also: Text of measure
Homestead tax exemption increase
The amendment increased the homestead tax exemption from $40,000 to $100,000. The increased exemption applied to the tax year beginning on or after January 1, 2023. The homestead tax exemption was last increased in May 2022 from $25,000 to $40,000.[2]
Non-homestead real property appraisal limit
The amendment also authorized 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 also authorized the state law to pass laws prescribing additional eligibility requirements for the limitation on appraised values. The appraisal limit applied 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.[2]
Property tax limits on homesteads owned by elderly or disabled residents
The amendment required 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 is required to implement a reduction for that year and 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 required 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 applied to tax years beginning on or after January 1, 2023.[2]
Excluding additional state education funding from appropriations limit
The amendment excluded the appropriations of state tax revenue for the purposes of paying for ad valorem tax from the constitution appropriations limit.[2]
Appraisal board governance
The amendment also authorized 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.[2]
Text of measure
Ballot title
The ballot title was as follows:[2]
| “ | The constitutional amendment to authorize the legislature to establish a temporary limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes; to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads from $40,000 to $100,000; to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts; to except certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations; and to authorize the legislature to provide for a four-year term of office for a member of the board of directors of certain appraisal districts.[4] | ” |
Constitutional changes
- See also: Article 8, Texas Constitution
The measure added sections 1 and 22 of Article 8 and section 30 of Article 16 of the state constitution. The following underlined text was added, and struck-through text was deleted:[2]
Note: Use your mouse to scroll over the below text to see the full text.
Section 1 Subsection (n): (n) This subsection does not apply to a residence homestead to which Subsection (i) of this section applies. Notwithstanding Subsections (a) and (b) of this section, the Legislature by general law may limit the maximum appraised value of real property for ad valorem tax purposes in a tax year to the lesser of the most recent market value of the property as determined by the appraisal entity or 120 percent, or a greater percentage, of the appraised value of the property for the preceding tax year. The general law enacted under this subsection may prescribe additional eligibility requirements for the limitation on appraised values authorized by this subsection. A limitation on appraised values authorized by this subsection:
(n-1) This subsection and Subsection (n) of this section expire December 31, 2026. Subsection (c): (c) The amount of $100,000 (d) Except as otherwise provided by this subsection, if a person receives a residence homestead exemption prescribed by Subsection (c) of this section for homesteads of persons who are 65 years of age or older or who are disabled, the total amount of ad valorem taxes imposed on that homestead for general elementary and secondary public school purposes may not be increased while it remains the residence homestead of that person or that person’s spouse who receives the exemption.AAIf a person who is 65 years of age or older or who is disabled dies in a year in which the person received the exemption, the total amount of ad valorem taxes imposed on the homestead for general elementary and secondary public school purposes may not be increased while it remains the residence homestead of that person’s surviving spouse if the spouse is 55 years of age or older at the time of the person’s death, subject to any exceptions provided by general law. The legislature, by general law, may provide for the transfer of all or a proportionate amount of a limitation provided by this subsection for a person who qualifies for the limitation and establishes a different residence homestead. However, taxes otherwise limited by this subsection may be increased to the extent the value of the homestead is increased by improvements other than repairs or improvements made to comply with governmental requirements and except as may be consistent with the transfer of a limitation under this subsection. For a residence homestead subject to the limitation provided by this subsection in the 1996 tax year or an earlier tax year, the legislature shall provide for a reduction in the amount of the limitation for the 1997 tax year and subsequent tax years in an amount equal to $10,000 multiplied by the 1997 tax rate for general elementary and secondary public school purposes applicable to the residence homestead.AAFor a residence homestead subject to the limitation provided by this subsection in the 2014 tax year or an earlier tax year, the legislature shall provide for a reduction in the amount of the limitation for the 2015 tax year and subsequent tax years in an amount equal to $10,000 multiplied by the 2015 tax rate for general elementary and secondary public school purposes applicable to the residence homestead. For a residence homestead subject to the limitation provided by this subsection in the 2021 tax year or an earlier tax year, the legislature shall provide for a reduction in the amount of the limitation for the 2023 tax year and subsequent tax years in an amount equal to $15,000 multiplied by the 2022 tax rate for general elementary and secondary public school purposes applicable to the residence homestead. Beginning with the 2023 tax year, for any tax year in which the amount of the exemption provided by Subsection (c) of this section applicable to the residence homestead of a married or unmarried adult, including one living alone, or the amount of the exemption provided by Subsection (c) of this section applicable to the residence homestead of a person who is disabled as defined by Subsection (b) of this section and of a person 65 years of age or older is increased, the legislature shall provide for a reduction for that tax year and subsequent tax years in the amount of the limitation provided by this subsection applicable to a residence homestead that was subject to the limitation in the tax year preceding the tax year in which the amount of the exemption is increased in an amount equal to the amount by which the amount of the exemption is increased 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 amount of the exemption is increased. Section 22: (a-1) Appropriations from state tax revenues not dedicated by this constitution that are made for the purpose of paying for ad valorem tax relief as identified by the legislature by general law are not included as appropriations for purposes of determining whether the rate of growth of appropriations exceeds the limitation prescribed by Subsection (a) of this section. Article 16, Section 30: (e) The Legislature by general law may provide that members of the governing body of an appraisal entity established in a county with a population of 75,000 or more serve terms not to exceed four years. TEMPORARY PROVISION. (a) This temporary provision applies to the constitutional amendment proposed by H.J.R. 2, 88th Legislature, 2nd Called Session, 2023.
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Readability score
- See also: Ballot measure readability scores, 2023
Using the Flesch-Kincaid Grade Level (FKGL) and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legislature wrote the ballot language for this measure.
The FKGL for the ballot title is grade level 19, and the FRE is 18. The word count for the ballot title is 129.
Support
Supporters
Officials
- Gov. Greg Abbott (R)
- State Rep. Will Metcalf (R)
- State Rep. Dade Phelan (R)
- Lt. Gov. Dan Patrick (R)
Organizations
- National Federation of Independent Business - Texas
- Texans for Fiscal Responsibility
- Texas Association of Builders
- Texas Eagle Forum
- Texas Realtors
- True Texas Project
Arguments
Opposition
Ballotpedia did not locate a campaign in opposition to the ballot measure.
Arguments
You can share campaign information or arguments, along with source links for this information, at editor@ballotpedia.org
Campaign finance
If you are aware of a committee registered to support or oppose this amendment, please email editor@ballotpedia.org.
| Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures | |
|---|---|---|---|---|---|
| Support | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Oppose | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Media editorials
- See also: 2023 ballot measure media endorsements
Ballotpedia lists the positions of media editorial boards that support or oppose ballot measures. This does not include opinion pieces from individuals or groups that do not represent the official position of a newspaper or media outlet. Ballotpedia includes editorials from newspapers and outlets based on circulation and readership, political coverage within a state, and length of publication. You can share media editorial board endorsements with us at editor@ballotpedia.org.
Support
Opposition
Background
Senate Bill 2 (2023)
During the second special legislative session, the Texas State Legislature passed Senate Bill 2 (SB 2), the implementing legislation for Proposition 4. SB 2 took effect since Proposition 4 was approved. SB 2 required the Texas Commissioner of Education to calculate a school district's maximum compressed tax rate (MCR) for the 2023-2024 school year and reduce it by $0.107. The law also continued to require that a district's MCR not be less than 90% of another district's MCR.[5]
SB 2 amended the state Tax Code to increase the homestead exemption from $40,000 to $100,000. It also created a temporary limitation on annual appraised value increases of 20% for certain non-homestead real property. It applied only to property with an appraised value of less than $5 million. SB 2 required that an appraisal district board of directors in a county with a population of 75,000 or more be made up of five directors.[5]
The Legislative Budget Board predicted the two-year net impact of the bill on the general revenue to be a loss of $12.7 billion through August 31, 2025.[6]
SB 2 passed in the state Senate by a vote of 31-0 and in the state House by a vote of 133-4.[5]
Homestead exemption increases in Texas
- See also: Proposition 2 (2022), Proposition 1 (2015), and Proposition 1 (1997)
Ballotpedia tracked three homestead exemptions passed in Texas since 1997. In May 2022, Texas voters approved an an amendment to increase the homestead exemption from $25,000 to $40,000. It was approved with 84.95% of the vote. In 2015, Texas voters approved Proposition 1, which increased the homestead exemption from $15,000 to $25,000. It was approved by a vote of 86.38% to 13.62%. 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%.
Referred measures on the Texas ballot
- See also: List of Texas ballot measures
In Texas, a total of 281 ballot measures appeared on statewide ballots between 1985 and 2022. Two hundred forty-eight ballot measures were approved, and 33 ballot measures were defeated.
| Texas statewide ballot measures, 1985-2022 | |||||||
|---|---|---|---|---|---|---|---|
| Total number | Annual average | Annual minimum | Annual maximum | Approved | Defeated | ||
| # | % | # | % | ||||
Texas ballot measures in odd-numbered years
Between 1995 and 2021, Texans decided on 175 statewide ballot measures appearing on odd-numbered year ballots. Voters approved 160 measures and defeated 15.
Path to the ballot
- See also: Amending the Texas Constitution
To put a legislatively referred constitutional amendment before voters, a two-thirds supermajority vote is required in both the Texas State Senate and the Texas House of Representatives.
This amendment was introduced as House Joint Resolution 2 on July 10, 2023, in the second special legislative session. It passed in the House by a vote of 132-5 with 13 absent on July 13. HJR 2 passed in the Senate on the same day by a vote of 31-0.[1]
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How to cast a vote
- See also: Voting in Texas
Click "Show" to learn more about voter registration, identification requirements, and poll times in Texas.
| How to cast a vote in Texas | ||||||
|---|---|---|---|---|---|---|
Poll timesIn Texas, all polling places are open from 7 a.m. to 7 p.m. Central Time. An individual who is in line at the time polls close must be allowed to vote. Texas is divided between Central and Mountain time zones.[7]
Registration
To register to vote in Texas, an applicant must be a United States citizen, a resident of the county in which he or she is registering, and at least 17 years and 10 months old.[8] The deadline to register to vote is 30 days before the election. Prospective voters can request a postage-paid voter registration form online or complete the form online and return it to the county voter registrar. Applications are also available at a variety of locations including the county voter registrar’s office, the secretary of state’s office, libraries, and high schools. Voter registration certificates are mailed to newly registered voters.[9] Automatic registrationTexas does not practice automatic voter registration. Online registration
Texas does not permit online voter registration. Same-day registrationTexas does not allow same-day voter registration. Residency requirementsProspective voters must reside in the county in which they are registering to vote. Verification of citizenshipTexas does not require proof of citizenship for voter registration. Section 18.068 of the Texas Election Code says the following:
In January 2019, the Texas secretary of state’s office announced that it would be providing local election officials with a list of registered voters who obtained driver’s licenses or IDs with documentation such as work visas or green cards. Counties would then be able to require voters on the list to provide proof of citizenship within 30 days.[11] The review was halted by a federal judge in February 2019, and Secretary of State David Whitley rescinded the advisory in April.[12][13] A news release from Whitley’s office stated that “... going forward, the Texas Secretary of State's office will send to county voter registrars only the matching records of individuals who registered to vote before identifying themselves as non-U.S. citizens to DPS when applying for a driver's license or personal identification card. This will ensure that naturalized U.S. citizens who lawfully registered to vote are not impacted by this voter registration list maintenance process.”[14] Verifying your registrationThe Texas Secretary of State’s office allows residents to check their voter registration status online by visiting this website.
Voter ID requirementsTexas requires voters to present photo identification while voting.[15] The following list of accepted ID was current as of February 2023. Click here for the Texas Secretary of State's page on accepted ID to ensure you have the most current information.
Identification provided by voters aged 18-69 may be expired for no more than four years before the election date. Voters aged 70 and older can use an expired ID card regardless of how long ago the ID expired.[15] Voters who are unable to provide one of the ID options listed above can sign a Reasonable Impediment Declaration and provide one of the following supporting documents:[15]
The following voters are exempt from showing photo ID:[15]
Voters who do not have a photo ID can obtain a Texas Election Identification Certificate (EIC) at any Texas driver’s license office during regular business hours. Voters can also obtain an Election Identification Certificate from a mobile station. Locations are listed here.[15] | ||||||
See also
External links
Footnotes
- ↑ 1.0 1.1 Texas State Legislature, "House Joint Resolution 2 Overview," accessed July 14, 2023
- ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 Texas State Legislature, "House Joint Resolution 2 Text," accessed July 14, 2023
- ↑ Texas Tribune, "Texas legislature property tax cuts," July 13, 2023
- ↑ 4.0 4.1 4.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid
<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content - ↑ 5.0 5.1 5.2 Texas State Legislature, "Senate Bill 2," accessed August 9, 2023
- ↑ Texas State Legislature, "Senate Bill 2," accessed August 9, 2023
- ↑ VoteTexas.gov, "Who, What, Where, When, How," accessed February 27, 2023
- ↑ Texas Secretary of State, “Request for Voter Registration Applications,” accessed February 27, 2023
- ↑ Texas Secretary of State, “Voter Registration,” accessed February 27, 2023
- ↑ Texas Constitution and Statutes, “Election Code,” accessed February 23, 2023
- ↑ The Texas Tribune, “Texas officials flag tens of thousands of voters for citizenship checks,” January 25, 2019
- ↑ The New York Times, “Federal Judge Halts ‘Ham-Handed’ Texas Voter Purge,” February 28, 2019
- ↑ The New York Times, “Texas Ends Review That Questioned Citizenship of Almost 100,000 Voters,” April 26, 2019
- ↑ Texas Secretary of State, “Secretary Whitley Announces Settlement In Litigation On Voter Registration List Maintenance Activity,” April 26, 2019
- ↑ 15.0 15.1 15.2 15.3 15.4 Texas Secretary of State, "Required Identification for Voting in Person," accessed February 27, 2023 Cite error: Invalid
<ref>tag; name "tvid" defined multiple times with different content
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