Proposition 4 will save homeowners money, but has complex nuisances

TEXARKANA, Texas — Texans approved a ballot measure last month decreasing homeowner’s tax burdens.

Proposition 4, which started as SB 2, was approved by high margins and increases the homestead exemption to $100,000.

Bowie County Chief Appraiser Mike Brower said while the new bill seems like a good thing for homeowners, it could eventually lead to increased taxes after a few years.

“As values go up, the amount is going to go up and they (homeowners) are still going to pay,” Brower said. “Tax rates go up and (home) values go up, they’re going to pay more next year than they did this year.”

Brower said the proposition includes a clause for citizens who are over the age of 65 or disabled receiving an additional $15,000 homestead exemption on top of the $100,000 base.

“That does not mean that their school taxes will always be what that frozen levy is,” Brower said. “Your taxes or school taxes could go down, which they will do… and they will go back up a little bit as values go up.”

Brower said the value increase alone will lead to an increase in property taxes, but an annual 10% cap on appraisal value increase will mitigate some of the increased liability. Still, over time, home owners will see their taxes continue to rise as taxable values rise to their appraisal value.

“Our legislature, they do things they don’t think about,” Brower said. “They do it because it’s an election year and next year they want to get reelected and they don’t think about the consequences of what they’re doing.”

Brower said that his office really tries to make sure that Bowie County residents know what is coming down in terms of property taxes.

“Because if people know, they can plan for it,” Brower said.

Property that is not homestead eligible, like rental properties, will not benefit from the tax break.