On May 7, 2022, Texans will have the opportunity to vote for an increase in the current annual homestead exemption on school district property taxes. If you’re struggling with a constantly increasing annual property tax bill, this may be welcome news. In this blog, you can learn a bit more about current homestead exemptions on school district property taxes and how the new legislature might impact your 2023 property tax bill.
What Are Homestead Exemptions?
Homestead exemptions are property tax relief measures that reduce the taxable value of a Texas homeowner’s primary residence (homestead). Essentially, if you have a home valued at $100,000 and qualify for a homestead exemption of $25,000, your property tax rate is applied as if your home is valued at $75,000.
What Are the Current Homestead Exemptions for School District Property Taxes?
Currently, Texans who qualify receive a $25,000 homestead exemption for school district property taxes. Other taxing units have the option to offer exemptions to homeowners in their district up to 20% of the home’s value. These exemptions are determined by the individual taxing unit and vary from county to county. If you have questions about homestead exemptions in your county, reach out to your local tax office.
What Changes Would the New Ballot Measure Make?
If the new ballot is voted in, the current $25,000 homestead exemption for school districts would increase to $40,000. Over the last year, Texas property values have increased exponentially, so this increased exemption could help to provide relief from big tax increases. The homestead exemption for school districts was last increased from $15,000 to $25,000 in 2015.
When Will the New Exemptions Go into Effect?
If the ballot passes, the new homestead exemption for school property taxes would be applied to 2022 property tax year. According to the Texas Legislative Budget Board, the increased homestead exemption will offer relief for Texas homeowners who are struggling to cover the cost of property tax bills, but this increase exemption will cost the state $355 million in school property tax income for 2023.
When Do I Vote?
If you’re interested in voting for this ballot item, make sure you head out to the polls on May 7, 2022 or check your local voting district for information about early and absentee voting options. In addition to the increase to the homestead exemption for school district property taxes, there will also be a vote on an amendment to allow the Texas legislature to reduce property tax limits for school maintenance and operations on the homesteads of elderly or disabled residents.
What if I Need Help with My Current Property Taxes?
If you’re already behind on your property taxes or worried about covering the cost of your upcoming bill before the first of the year, it’s time to reach out to Home Tax Solutions. We provide all 254 Texas counties with access to affordable property tax loans to relieve the stress of high annual property tax bills. Get started working with our team today by filling out our quick and easy online application.
