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 Propositions Index |
Previous Proposition
Proposition 2The ballot will read: The constitutional amendment authorizing the legislature to provide for the ad valorem taxation of a residence homestead solely on the basis of the property’s value as a residence homestead.Background: When an appraisal district determines the value of property for property tax purposes, the district is allowed to consider what the property would be worth if it were used for a more valuable purpose. For example, the appraisal district may say that residential property on a busy street would be more valuable if the lot were used for a business instead of a home, and then can set the value of the property as if a business was located there.. The Legislature recently voted to require that the tax on a person’s home be based only on the property’s value as a residence, regardless of whether the property might be worth more if used for another purpose. For this requirement to take effect, voters must approve Proposition 2. Contrary to some anonymous emails that are circulating, this amendment does not give the state the power to impose a state property tax. This proposed amendment only affects how the valuation of a homestead is determined for property tax purposes. A state property tax is prohibited under Article 8, Section 1-e of the Texas Constitution, and that section is not affected by this proposed amendment.For: Some Texas homeowners have seen their appraisals rise substantially, not because the value of their homes increased, but because the land was considered more valuable as a potential business site. Places like Houston that have no zoning are especially vulnerable to dramatic appraisal increases based on businesses replacing other residences in an area. Texas already prohibits agricultural land and timber land from being appraised based on other possible uses, but no similar protection exists for homeowners. Against: If the value of a homeowner’s residence increases dramatically because the value of the land itself increases, the homeowner will benefit when it is time to sell the property. Therefore, the homeowner should pay the taxes on the higher value. If we allow residential property to be valued solely on residential use, then cities, counties and school districts will need to raise tax rates to make up for the lost tax revenue, making taxes higher for everyone else. that would occur if this proposition passes, CLICK HERE. Note that Propositions 2, 3, and 5 were passed together in a single bill. The language for Proposition 2 is contained in "Article 1" of the bill. Words to be added to the Constitution will be underlined. Words to be removed, if any, will be [ For a more detailed analysis of this proposition For the full House Research Organization report |