Vote to Lower Property Taxes!

Constitutional amendments supported by Texas REALTORS® also will protect the right to farm and invest in water, energy, and broadband infrastructure.

Texas REALTORS® is supporting five of the 14 proposed constitutional amendments on the November 7 statewide ballot (early voting October 23 – November 3).

State of Texas Proposition 4 would deliver the biggest property tax relief package in Texas history by raising the homestead tax exemption to $100,000 (up from $40,000) and authorizing the state to send more money to local school districts (also referred to as “compression”). These changes will help reduce property taxes for both homeowners and non-homestead properties.

Proposition 1 would enshrine in the Texas Constitution certain rights related to agricultural activities on private property. Propositions 6, 7, and 8 establish funds to make investments in the state’s water, electricity, and broadband infrastructure.

The association has not taken a position for or against the other nine amendments on the ballot.

Proposition 1 –
Protect the Right to Farm

Ballot Language: The constitutional amendment protecting the right to engage in farming, ranching, timber production, horticulture, and wildlife management.

Analysis: While current statutes protect the ability to engage in agricultural activities on private property, this amendment will preserve those rights in the constitution to protect against future efforts to weaken these rights. State agencies and local authorities will retain the ability to regulate activities to protect natural resources and to address issues related to public safety and animal welfare.

Proposition 4 –
Provide Property Tax Relief

Ballot Language: 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 purposes¹; to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads from $40,000 to $100,000²; 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 amounts³; to except certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations⁴; 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 districts⁵.

Analysis: If passed, Proposition 4 will provide much-needed property-tax relief to Texans. The proposition raises the homestead exemption related to public school taxes from $40,000 to $100,000. The lead bill author for this legislation projects the average Texas homeowner under age 65 can expect about $1,300 in tax savings per year because of this property tax reform. Those over 65 may see an average of about $1,450 per year in savings.

Proposition 6 –
Establish the Texas Water Fund

Ballot Language: The constitutional amendment creating the Texas water fund to assist in financing water projects in this state.

Analysis: Passing Proposition 6 will provide a critical source of funding to protect our water quality, ensuring Texans have plenty of clean water and preserving real estate values, economic activity, and growth for the future. The amendment creates a dedicated fund outside of the state’s general revenue fund to invest in upgrades and repairs to the state’s existing water infrastructure and pay for new water projects to meet the needs of a growing population.

Proposition 7 –
Establish the Texas Energy Fund

Ballot Language: The constitutional amendment providing for the creation of the Texas Energy Fund to support the construction, maintenance, modernization, and operation of electric generating facilities.

Analysis: Proposition 7 seeks to ensure that the Texas energy grid can meet the demands of tomorrow—keeping Texas an attractive option for people and businesses. The Texas Energy Fund would support the maintenance and repair of existing electricity-generating infrastructure, as well as construction of new projects to increase the capacity and reliability of the grid.

Proposition 8 –
Establish the Broadband Infrastructure Fund

Ballot Language: The constitutional amendment creating the broadband infrastructure fund to expand high-speed broadband access and assist in the financing of connectivity projects.

Analysis: Proposition 8 elevates real estate values by bringing critical broadband infrastructure to areas in need of service—both urban and rural. Establishing high-speed internet service in more areas of the state supports economic development, increases housing choices, and provides more employment and other opportunities for Texans.