Information and recommendations provided by State Rep Phil King
Proposition 1 (SJR 1)
“The constitutional amendment increasing the amount of the residence homestead exemption from ad valorem taxation for public school purposes from $15,000 to $25,000, providing for a reduction of the limitation on the total amount of ad valorem taxes that may be imposed for those purposes on the homestead of an elderly or disabled person to reflect the increased exemption amount, authorizing the legislature to prohibit a political subdivision that has adopted an optional residence homestead exemption from ad valorem taxation from reducing the amount of or repealing the exemption, and prohibiting the enactment of a law that imposes a transfer tax on a transaction that conveys fee simple title to real property.”
DIGEST: Proposition 1 would increase the mandatory homestead exemption from $15,000 to $25,000. The taxable value of homesteads owned by the elderly or people who are disabled also would be correspondingly reduced. These provisions would take effect January 1, 2015, and would apply only to a tax year beginning on or after that date.
SUPPORTERS SAY: The property tax is one of the most onerous taxes. In areas of rapid economic growth where demand for housing is strong, homeowners, especially those living on fixed incomes, may be priced out of their homes by rising property taxes. The amount of the mandatory school district residence homestead exemption has not been updated since 1997, while appraisals have continued to increase. This amendment provides much needed tax relief by increasing the amount of the homestead exemption, reducing the amount of taxes paid by a homeowner. By making this effective for 2015 taxes, it ensures that relief is felt immediately. It also promotes economic growth by allowing homeowners to retain more of their money.
OPPONENTS SAY: The homestead exemption increase will only nominally provide property tax relief for homeowners. The exemption will reduce property taxes for the average homeowner by about $126 a year. The homestead exemption increase provides no benefit for those who rent homes. Property taxes are a local matter. The best way to control local property taxes is for voters to hold local officials accountable.
Click here to review – Parker County Constitutional Amendment Newsletter
State Representative Phil King supports each of the seven proposed amendments.