AG Paxton Files Lawsuit to Protect Homeowners’ Tax Cuts

Published 12:09 pm Thursday, September 15, 2016

Special to The Leader

AUSTIN— Attorney General Ken Paxton announced an intervention into a property tax lawsuit today, stating that local school districts violated the Texas Constitution and state law when they reduced or repealed their Local Option Homestead Exemptions (LOHE)*.

The Texas Legislature passed Senate Bill 1 and Senate Joint Resolution 1 in May 2015, which 86% of voters ratified the same year, giving a much needed property tax reduction to homesteaders in Texas. Holding every school district harmless, the Legislature also paid for the tax breaks in the state budget.

“It is a clear slight-of-hand reduction in the local option homestead exemption by a handful of school districts.” said Attorney General Paxton. “This is an attempted money-grab, pure and simple. These districts clearly intend to undermine state law and negate the tax break. Not only is this lawsuit about standing up for the homeowners in these school districts, but also voters across the state.”

“I appreciate the leadership of Lt. Governor Dan Patrick and Senator Jane Nelson. Reinforced by the Texas Association of Realtors, their leadership made these tax cuts possible. This lawsuit intervention unites all of our efforts, and I am confident that the local taxpayer and the state will prevail.”

To view a copy of the intervention, click here.

*Correction to “Local Option Homestead Exemptions”