Texas voters overwhelmingly approve measure to increase homestead tax exemption
TEXAS - Texas voters overwhelmingly okayed Proposition 4 in the November election, meaning homeowners will get the biggest property tax rebate in state history.
The $5.6 billion measure permanently raises the homestead exemption on local school taxes from $40,000 to $100,000 per yer per household, benefiting 5.7 million households.
Any homeowner would receive in perpetuity between a $750 and $1,500 windfall every year in terms of less taxes paid. Renters are not directly impacted by the legislation, but if you're going to be a homeowner in the future, this is a benefit that you'll receive.
Lt. Gov. Dan Patrick celebrated the vote on social media calling it "a massive victory in the fight against property taxes that takes effect this year."
The package sends $7.1 billion from the state's $33 billion surplus to school districts, so they can cut their property tax rates.
Property tax cuts were a key issue heading into the Texas Legislative session.
Texas: The Issue Is - Leaders, lawmakers celebrate property tax relief measure
The House and Senate butted heads on how best to achieve those cuts before coming up with the deal that eventually was approved by voters.
"We know whose money that is! That money belongs to the taxpayers, and we are giving it back to the taxpayers of Texas," said Governor Greg Abbott at the bill signing.