Prop 1 Gives Texas Residents An Opportunity To Lower Property Taxes
While the phrase, “Everything is bigger in Texas” might be a bit overused, it certainly holds true when it comes to property taxes. The consumer loan website Wallethub.com recently conducted a Census-based property tax study that claims Texas has the fifth highest average real estate tax in the United States. Part of the reason for the inflated property tax bill is that the state collects no state income tax, making it primarily dependent upon property owners to fund the state budget.
It’s not just homeowners who are paying the cost of inflated real estate tax, renters are experiencing the financial squeeze as well. “We all pay for property taxes, whether directly or indirectly, as they impact the rent we pay as well as the finances of state and local governments,” states WalletHub.
Texas homeowners and renters will have the opportunity work together to ease their tax burden by voting YES to Prop 1 in the upcoming November 3 election. If passed, Prop 1 will put money back in the pockets of Texans by increasing the homestead exemption from $15,000 to $25,000. It will also ban real estate transfer taxes, which target home sales as another state taxing source. Seniors and people with disabilities on limited incomes will also experience financial relief as a result of the lower property tax cap Prop 1 proposes.
“Prop 1 is a great step to begin to removing he tax burden from property owners in Texas.” Says Larry W. Johnson President/CEO of the Arlington Board of REALTORS®. Johnson goes on to say, “The banning of the transfer tax makes perfect sense. The property owner took the risk on the property value, maintained the property and paid the taxes on the property while owning it. Why should the state tax a property owner for being a good citizen when they sell their property?”