Proposition 3 deals with tax exemptions
Editor’s note: As a service to area voters, the Bay City Tribune will take each of the upcoming propositions on the Nov. 5 ballot. This is the first of a series of articles that will preview the upcoming propositions on the ballot.
Texas Proposition 3, the Temporary Property Tax Exemption for Disaster Areas Amendment, is on the ballot in Texas as a legislatively referred constitutional amendment on Nov. 5.
• A “yes” vote supports this amendment to allow political subdivisions to provide temporary property tax exemptions in areas that the governor declared as disaster areas.
• A “no” vote opposes this amendment, thus continuing to allow property reappraisals following disasters but not tax exemptions.
As of 2019, local governments in Texas have the power to reappraise the value of properties located within a governor-declared disaster area and that were damaged in the disaster. Proposition 3 would authorize the state legislature to allow local governments to provide tax exemptions for properties in governor-declared disaster areas.
The state legislature also passed a bill, House Bill 492 (HB 492), that would go into effect on January 1, 2020, if voters approve Proposition 3. HB 492 would provide rules for when and how a local government can provide an exemption, the types of properties eligible for an exemption, and exemption rates. Properties that would be eligible include houses used as dwellings, improvements to real property, and tangible personal property used to produce income.