Texas Government: Texas Constitution

QUESTION

1. Identify one proposed amendment to the Texas Constitution recently on the ballot (within the past five years). Write the exact wording of the amendment proposal on the ballot, indicate when it was proposed and voted upon and whether it was ratified by the voters. Use and cite evidence from at least one source from the list below to do so.
2. Using and citing evidence from at least one source from the list below, explain what change its authors intended to make to the Texas Constitution and why they intended to make that change.
3. Using and citing evidence from at least one source from the list below, make an argument in favor of or against the constitutional amendment. I am not looking for an explanation of your opinion or beliefs about the issue, but an evidence-based argument that uses statistics, research studies, case studies, expert analysis or the like from cited, solid academic sources to back up your position. State your position clearly and use evidence to support it.
4. Compose a response to another student’s post. Choose a student who discussed a different topic or option than you did. You may agree or disagree with their position but your response should be more than just opinion – use and properly cite solid academic sources to deepen and extend the discussion.

ANSWER

Texas Constitution

Texas Proposition 2 Ballot Title: “The constitutional amendment increasing the amount of the residence homestead exemption from ad valorem taxation for public school purposes from $25,000 to $40,000” (Patrick et al., 2022). Proposition 2 was proposed on October 18, 2021, voted upon on May 7, 2022, and was approved by a vote of 84.95% (Ballotpedia, n.d.). The proposed amendment is made on Section 1b(c), Article VIII, Texas Constitution. Previously, the state gave homestead owners a $25,000 tax relief on their residences, but this amendment proposed a $40 000 tax relief instead (Patrick et al., 2022). Due to COVID-19’s economic aftermath, there was a consensus among policymakers to provide some relief from property taxes to Texans. Thus, the amendment aimed to reduce the economic burden by reducing property taxes for residence owners.

Unfortunately, this proposition does more harm than good. Brien and Sjoquist (2014) found evidence of fiscal illusion in homestead tax exemption policies, meaning they do not bring about the intended effects. The authors state, “We find that over one-third of funds transferred to counties through this program are used to increase revenues rather than provide tax relief” (Brien & Sjoquist, 2014). Typically, state governments must provide school districts with education grants to offset the revenues they forego due to these tax exemptions. According to Brien and Sjoquist (2014), only one-third of these state funds provide tax relief to school districts, while the rest is abated to increase local government spending. Another study by Combs and Foster (2021) indicated that these homestead exemptions significantly reduce local government revenues, but state governments rarely reimburse them for lost revenues. This situation possibly explains why some state funds sent to reimburse school districts are abated to finance local government spending. Although this policy saves homestead owners approximately $176 annually, promotes student performance, and stimulates local education spending, it also increases school district inefficiency and magnifies existing inequities in the education system (Eom et al., 2014). Therefore, its harms outweigh its benefits.

References

Combs, A. E., & Foster, J. M. (2021). The Effects of Homestead Exemptions for Seniors and Disabled People on School Districts. AERA Open, 7(1), 233285842098871. https://doi.org/10.1177/2332858420988712

Eom, T. H., Duncombe, W., Nguyen-Hoang, P., & Yinger, J. (2014). The Unintended Consequences of Property Tax Relief: New York’s STAR Program. Education Finance and Policy, 9(4), 446–480. https://doi.org/10.1162/edfp_a_00143

Patrick, D., Phelan, D., & Archer, J. (2022). Analyses of Proposed Constitutional Amendments 87th Texas Legislature, 2nd and 3rd Called Sessions. Texas Legislative Council. https://tlc.texas.gov/docs/amendments/analyses22.pdf

Texas Proposition 2, Increased Homestead Exemption for School District Property Taxes Amendment. (n.d.). Ballotpedia. https://ballotpedia.org/Texas_Proposition_2,_Increased_Homestead_Exemption_for_School_District_Property_Taxes_Amendment_(May_2022)

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