A breakdown of Proposition 4 before you head to the polls
NORTH TEXAS (CBSNewsTexas.com) – Proposition 4 on your ballot will tackle property tax relief.
While lawmakers passed this property relief proposal—it's up to voters to make it happen.
The $18 billion property tax cut would raise the school homestead exemption from $40,000 to $100,000.
It would also put a temporary limit on appraisal for commercial, mineral, and residential properties that don't receive a homestead exemption and are worth less than $5 million.
Proposition 4 caps property appraisal increases on non-homestead properties to 20% for the next three years.
Right now there's no cap in place.
Supporters say the relief package will save most homeowners an average of $2,600 in savings during the first two years.
But there is some concern about the long-term sustainability of the proposition. Some public education advocates worry school districts would be left underfunded, in the event of an economic downturn.
According to the Texas A&M Real Estate Research Center data:
- In 2022, the median home price in DFW hit $400,000 up from $346,000 in 2021 and $293,000 in 2020.
- The median home price has grown 56% in the past five years.
Direct relief for renters, in this proposal, was left out.