Early voting starts Monday for seven propositions to the Texas Constitution. The first one, if approved, will cut local school taxes for homeowners across the state.
The state currently requires public school districts to give a $15,000 exemption for homeowners with a homestead exemption from the local appraisal district. That means a home valued at $100,000 would pay taxes on a value of $85,000.
The proposition, which approved by the Texas Legislature in the session earlier this year, will increase the state exemption to $25,000. If it passes, the owner of a $100,000 home would pay taxes on a value of $75,000.
The state is supposed to pay each district the amount lost in local property taxes because of the decrease in the taxable value. Bridge City Superintendent Mike King said the legislature budgeted for the additional money to local districts for two years.
“What we lose locally is supposed to be refunded by the state,” said Greg Perry, assistant superintendent for Little Cypress-Mauriceville. He added the local districts do not always get the state money that has been promised by the legislature.
All the districts are counting on the state for reimbursements of the losses in property tax income.
The LC-M district does not have much industry and most of its property taxes come from homes. Perry said the constitutional increase in the homestead will cost an estimated $480,000 of tax dollars a year.
West Orange-Cove is an industry-rich district. Finance Director Melinda James said the district will lose and estimated $500,000 in local revenues from the increased homestead exemption.
Dr. Stephen Patterson, superintendent of Orangefield, said his district will lost $224,000 in local homestead revenues under the new proposition.
Each school district’s board of trustees has the option of giving an additional homestead. If the proposition passes, every district must keep its current local exemption for five years.
Bridge City Superintendent King said the Bridge City board this year decided to eliminate the local homestead exemption because of the obligation to keep an exemption.
The district can add a local homestead exemption, if the board chooses, he said. Bridge City ISD previously last year gave a 10 percent local exemption.
Orangefield, LC-M and WO-C are keeping the same homestead exemptions as last year. LC-M has a 15 percent additional exemption. WO-C and Orangefield give the maximum 20 percent local exemption.
Orangefield Superintendent Patterson expects the proposition will pass. Voters in the district earlier this month approved a Tax Ratification Election. The state allows that kind of local election to allow individual school districts to raise the basic maintenance and operation tax rate. The maximum rate allowed under state law is $1.04 per $100 valuation. If voters approve, like those in Orangefield did, the rate can go up to $1.17 per $100 valuation.
Patterson said the Orangefield school board decided to ask voters to approve the tax increase rather than lower the 20 percent local homestead exemption.
The constitutional amendment election will be Tuesday November 3. Orange County Election Administrator Tina Barrow said the amendments are the only items on the ballots for Orange County. Other counties may have scheduled additional elections. Early voting will end on Friday, October 30.
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