Texans voted to approve Proposition 4, a constitutional amendment that will increase property tax relief for homeowners and non-homesteaded properties, on Nov. 7, 2023. The proposition was based on two bills that were signed by Gov. Abbott in July, after months of negotiations between the House and the Senate. The proposition will:
- Raise the general school district homestead exemption from $40,000 to $100,000, benefiting about 5.7 million homeowners1
- Allow the legislature to set a cap on annual appraised-value increase for non-homestead real property, such as residential and commercial properties2
- Ensure appropriations for property tax relief do not count towards the constitutional spending limit2
- Allow the legislature to set four-year terms for members of an appraisal entity’s governing body in counties with more than 75,000 residents2
The proposition is part of an $18 billion tax cut for Texas property owners, which is the biggest in the state’s history1. The changes will apply to the 2023 tax bills due in January2.
The proposition received overwhelming support from the voters, passing by a margin of 85% to 15%3. The Associated Press and several major news outlets declared Proposition 4 passed about two hours after the polls had closed in most of the state3.
Lawmakers celebrated the victory, such as Lt. Gov. Dan Patrick, who said: “This is a historic day for Texas taxpayers. We have delivered on our promise to provide meaningful property tax relief for all Texans.”1