San Antonio Board of REALTORS® encourages voters to support Proposition 4 "Property Tax Relief" Amendment on General Election ballot
San Antonio, Texas - The San Antonio Board of REALTORS (SABOR) is proud to announce its full support for Proposition 4, the "Property Tax Relief" amendment, which voters will have the opportunity to vote on during the November 7 Texas Constitutional Amendment Election. At a time when many Texans face increasing property tax burdens, this initiative represents a significant step towards relieving the financial strain on homeowners and small businesses throughout our great state.
Proposition 4, a culmination of the 88th Texas Legislature's dedicated work during its 2023 Regular Session and 2nd Called Session, will usher in the largest tax cut in the history of Texas. The primary components of this proposal include:
1. Reduction in School Tax Rates:
Proposition 4 allocates nearly $12.6 billion to reduce the school property tax rate by 10.7 cents per $100 valuation for all homeowners and business properties.
The additional funds will be directed to school districts, enabling them to lower taxes for all property owners while shifting a portion of maintenance and operations costs to the state.
Reason to Support: By reducing school tax rates, Proposition 4 shifts the school tax burden from homeowners, decreasing it from 48% to 44.8%. This will significantly reduce the annual tax bills for residents, while the state's revenue surplus will bridge the gap for public education funding.
2. Increase to Homestead Exemption:
Every homeowner who homesteads their property, approximately 5.7 million homeowners, will receive a $100,000 homestead exemption.
Homeowners aged 65 or older and disabled homeowners will witness an even greater benefit, as their homestead exemption rises to $110,000.
Reason to Support: Increasing the residence homestead exemption to $100,000 is especially beneficial to the owners of moderately priced homes, precisely those homeowners in dire need of property tax relief. Additionally, by providing tax relief for commercial property owners, the proposed resolution could help stabilize businesses struggling under the weight of rising property taxes and help them to further grow and aid in the state’s overall economic expansion.
3. Non-Homesteaded Properties Cap:
Properties valued at $5 million or less, including residential and commercial properties, will benefit from a 20% circuit breaker (cap) on appraised values as a 3-year pilot project.
This category encompasses second homes, vacation properties, rental houses, and commercial retail or business properties.
Reason to Support: While renters do not receive direct relief from the proposed amendment, they will substantially benefit from reduced tax burdens on residential and commercial landlords, enabling landlords to avoid rent increases and, in some cases, even reduce rents.
4. Franchise Tax Savings:
The legislation includes savings on the franchise tax for small businesses. Small businesses generating up to $2.47 million in total revenue will no longer pay the state franchise tax (formerly around $1.5 million).
Reason to Support: This historic tax relief package removes 67,000 small businesses from paying the franchise tax altogether, ensuring our businesses can continue to grow, create jobs, and drive the Texas economy forward.
5. Newly Elected Positions on Local Appraisal Boards:
The bill contains a provision that lets voters in counties with over 75,000 residents elect three members of their countywide appraisal boards, starting in May 2024.
Reason to Support: By making certain positions on an appraisal district's board of directors elected positions in certain counties, appraisal districts in those counties will be more directly accountable to local taxpayers.
In summary, the combination of the increased homestead exemption and school tax cuts will save homesteaders in Texas an average of $1,300 a year in property taxes, providing much-needed relief to the hardworking Texans who reside in homes with a median price of $331,000. SABOR encourages all Texans to cast their vote in favor of Proposition 4 on Tuesday, November 7, 2023, to support the much-needed property tax relief for homeowners and businesses, fostering a stronger and more prosperous Texas.
For more information about Proposition 4 and its benefits, please visit www.texasrealtorssupport.com.
