Monday, November 20, 2017 / by Meagan Henry
What You Need to Know About Proposition 1 | The Russ Phillips Team
Proposition 1 And Real Estate Taxes
Voting is important. And this week on the ballot is a proposition which all homeowners, future homeowners, parents and taxpayers should be paying special attention to. That means you! Proposition 1, if passed, would increase the homestead exemption from $15 ,000 to $25,000 and create a permanent ban on real estate transfer taxes.
So when considering whether or not to vote for Proposition 1, there's a lot to consider. Think about the pros and cons when making your decision, before you cast your ballot.
On the pro side, Proposition 1 prevents the state from levying taxes on the sale of real estate. Though Texas does not currently have such a tax, this will actually make it so that you would have to amend the Texas constitution in order to enact a transfer tax on real estate.
These do exist in various parts of the country and they het as high as 4%. Imagine that. Also, homeowners in Georgetown's school districts would save an estimated $140 per year in taxes, $154 in Liberty Hill, $151 on average in Leander and $134 in Round Rock based on the increase in the homestead exemption.
And number 3, Proposition 1 reduces the burden of rising appraisals on those with fixed incomes.
Now, on the con side, some say Proposition 1 increases the burden for the state's share of education funding by over a billion dollars in the next two years alone. That's over one billion in state taxes going to cover the cost of education that could be spent cutting sales taxes or franchise taxes. Proposition 1 also increases the legislative authority in local affairs, centralizing decision making. And Proposition 1 may create an unsustainable burden on state revenue which would inevitably lead to higher taxes in the long run. That's what the con side is saying.
So as your real estate agent of choice, I would love to discuss Proposition 1 with you if you have further questions or concerns. Feel free to call me at 512.698.7877 or email me at email@example.com.
And you can get all your answers here too at www.russ-phillips.com.
See you next time.