What is Proposition A?

You’ve probably heard a lot of talk about Proposition A recently, but what exactly is it?

Prop A is a tax rate increase to provide millions of dollars for Austin ISD to go toward savings and pay raises for teachers. It passed on the ballot this November and will impact Austin property owners’ tax bills moving forward. The rate will increase by about 9.1 cents for every $100 of a property’s value.

How Does Prop A Impact Your Property Taxes?

Depending on the property’s size, the average homeowner in the school district can expect to pay around $400 more because of Prop A. Larger properties may pay a little more than that, and smaller properties may see a more minor increase. However, if you’re 65 and older, you won’t see as significant an increase on your next property tax bill. This is due to the homestead school tax ceiling, which caps school taxes for those aged 65 and older unless improvements are made on the property.

How Can You Lower Your Bill?

While Prop A will raise your property tax bill, there are ways you can help lower your costs in other areas. The goal here is to reduce your property’s taxable value, which you can do through two main ways: exemptions and protests. Multiple exemptions are available to Texas homeowners, including the homestead, 65 and older, and veteran exemptions that exempt a portion of your property’s value from taxation. Property tax protests are a way of trying to get a fair value for your property by protesting the county appraisal district’s assessment. The county appraises tons of properties each year, and it’s common for errors to occur that lead to higher values and, therefore, higher tax bills. Working with a professional property tax firm like Gill, Denson & Company is a great way to ensure you only pay what you owe. Open House Austin clients and readers can use our exclusive discount code OPEN HOUSE when signing up online. You will only pay 25% of your tax savings, only if Gill, Denson & Company can save money on your tax bill.