Got a flyer today from the TX Assoc. of Realtors promoting Prop 1. Every tax issue has a winner and a loser. The flyer says that homeowners and school districts are the winners.

My question - So who is the loser?

It increases the homestead exemption from $15k to 25k which will lower taxes for homeowners. School districts will lose tax revenue.

I think how it claims to be good for schools is legislation is passed with it that says the state of Texas will cover the loss. Basically state funding of schools will increase.

Also, fun fact, since tax bill comes out before we vote, but it applies to 2015 taxes, I think tax office now has to prepare bill showing your reduced taxes with disclosure that basically says, if you don't vote for this, and this amendment fails, we're gonna send you a supplemental bill for $xxx.

If realtors are promoting it, it stands to reason that they are the principal winners, regardless of who the losers are.

Agreed, FlyRod - that's why I'd like to know who the losers are.

Could this not just be offset by increasing the rate ? So you might get one year of relief, but then all the cities/counties will then just increase the rates in the pursuing years so as to make the net zero? Or am I missing something?

http://www.texastribune.org/2015/10/04/latest-property-tax-relief-plan-comes-big-cost/

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Could this not just be offset by increasing the rate ? So you might get one year of relief, but then all the cities/counties will then just increase the rates in the pursuing years so as to make the net zero? Or am I missing something?

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You aren't missing a thing.
And the so-called "tax relief" will be about $125 max for the homeowner. Hardly worth the effort.
Both sides are ( as usual) disingenuous . It's not much tax relief and the typical ISD woe is us babble.

From the above article, This:

"The biggest property tax relief package came in 2006, when then-Gov. Rick Perry approved a plan to lower school property tax rates. The annual bill for that measure: $7.1 billion. Despite the large investment, the tax relief was widely ridiculed, as many Texans still saw their tax bills grow due to rising appraisals and higher local tax rates. Making matters worse, expectations that a new business franchise tax would raise enough revenue to make up for it also never materialized."

And, I don't know how the increase in revenue from the Franchise Tax never materialized, but it kicks our butts pretty soundly.

The loser is people who own more than one home. If you own rentals, or commercial property, or anything else that doesn't get an exemption, they'll just raise your rate next year.

In the meantime, the winners are (for a limited, short duration) homeowners who actually have a homestead exemption - oh, and the bureaucrats...

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Got a flyer today from the TX Assoc. of Realtors

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This is all you need to know. If they're promoting it, it's best for them and no one else. It's their lobby meddling with the equilibrium to give them a carrot they can hold out in front of potential buyers to lure them into home ownership vs renting. The key being the equilibrium. The tax revenue won't go away, it'll just be shifted.

It's the exact same reason they lobby very hard to keep the mortgage interest deduction at the federal level. Is it a nice deduction to have? Sure! Should that be the deciding factor as to whether or not someone decides to become a homeowner? Probably not. If getting $0.25 - $0.35 back for every dollar you spend in interest makes the difference between being able to afford a home or not, I'd argue you probably shouldn't be buying that home!

I bet Ford and Chevy (more specifically their lending sides) would love to have a car interest tax deduction....

We lose, Politicians win. Government's appetite for money is insatiable. We will net NOTHING.