On November 4, Texans will vote on 17 legislatively referred constitutional amendments, of which eight regard taxation in the Lone Star State. Each requires a simple majority of voters to pass into law.
Speaking to Newsweek, a spokesperson for Texas Governor Greg Abbott said he would be making announcements regarding these amendments next week.
Why It Matters
Governor Abbott has made slashing property taxation one of his main legislative priorities, and in June signed into law two bills increasing property tax exemptions, which took effect at the beginning of September.
Most of the constitutional amendments to be voted on would either place bans or greater restrictions on certain taxes, showing Abbott and the Republican controlled Texas Legislature want to expand their tax-cutting agenda.
What To Know
Newsweek has outlined the taxation-related constitutional amendments Texans will vote on in November below.
Texas Proposition 2: Prohibit Capital Gains Tax on Individuals, Estates, and Trusts Amendment
If passed into law, Texas Proposition 2 would amend the state constitution, blocking the Texas Legislature in the future from imposing “a tax on the realized or unrealized capital gains of an individual, family, estate, or trust, including a tax on the sale or transfer of a capital asset.”
Texas Proposition 7: Establish Homestead Exemption for Surviving Spouses of Veterans Killed by a Service-Connected Disease Amendment
This proposition would amend the state constitution, allowing the Texas Legislature to introduce property tax exemptions covering all or part of the market value of the home of a surviving spouse whose partner was a veteran and died from a service-related disease.
Texas Proposition 8, Prohibit Estate Taxes and New Taxes on Estate Transfers, Inheritances, and Gifts Amendment
Texas Proposition 8 would amend the state constitution to prohibit the Texas Legislature from imposing a tax on the property or the transfer of an estate, inheritance, legacy, succession or gift from someone who has died.
Texas Proposition 9: Authorize $125,000 Tax Exemption for Tangible Property Used for Income Production Amendment
If approved by voters Texas Proposition 9 would amend the state constitution allowing the Texas Legislature to introduce a $125,000 exemption of the market value of personal tangible property used for income production from taxes.
Texas Proposition 10: Property Tax Exemption for Improvements to Homestead Destroyed by Fire Amendment
This proposes altering the Texas Constitution to allow the state legislature to provide temporary homestead exemptions for improvements made to properties that have been destroyed by fire.
Texas Proposition 11: Increase Homestead Tax Exemption for Elderly and Disabled Amendment
This proposes altering the state constitution to increase the property tax exemption for homesteads owned by elderly or disabled individuals from $10,000 to $60,000 of the market value.
Texas Proposition 13: Increase Homestead Property Tax Exemption Amendment
If approved, this proposition will amend the state constitution to increase the property tax exemption from $100,000 to $140,000 of the market value of a homestead.
Texas Proposition 17: Property Tax Exemption for Border Security Infrastructure Amendment
Texas Proposition 17 would allow the Texas Legislature to remove property taxation from any increase in value of a property situated in a county bordering Mexico as a result of improved border security infrastructure.
What People Are Saying
Speaking in August about his proposed expansion of property tax exemptions, Governor Abbott said: “If passed by voters this fall, Texas homestead exemptions will rise to $100,000, senior homeowners will be protected from being priced out of their home, the small business exemption for the Franchise Tax will double, and Texas small businesses will be protected from excessive appraisal increases.
“None of these monumental changes could have been accomplished without the hard work of Lieutenant Governor Patrick and Speaker Phelan.”
Speaking to The Texas Tribune earlier this year, political scientist Mark Jones, who teaches at the University of Houston, said: “Property taxes people pay is a concrete issue that affects every homeowner’s life directly. Even if the relief isn’t huge, it’s relief – especially if it’s reducing what might have otherwise been.”
What Happens Next
It remains to be seen whether Texans will approve the constitutional changes, which would result in new tax cuts and exemptions, when they cast their votes on November 4.