Texas Republican Primary Proposition 1 Explained, Property Tax Phase-Out What It Means, What It Would Cost, and What Happens Next
The Proposition, Word for Word
“Texas property taxes should be assessed at the purchase price and phased out entirely over the next six years through spending reductions.”
Proposition 1 passed with strong support from Republican primary voters on March 3, 2026. It is the most sweeping of the 10 Republican ballot propositions — and the one with the largest potential financial impact on every Texan, homeowner or not.
What It Does NOT Do
Before anything else: this proposition is non-binding. It does not pass laws or change state policy. The Republican Party of Texas describes it as an “opinion poll,” not a policy referendum.
Your property tax bill is not changing. Nothing happens automatically. The vote tells lawmakers what Republican primary voters want — it does not obligate anyone to act.
Two Ideas in One Proposition
Proposition 1 bundles two distinct policy concepts:
Part 1 — Assess at Purchase Price
Currently, Texas appraisal districts reassess property values every year based on market conditions. If your home’s market value rises, your taxable value rises with it — and so does your bill.
Under the purchase-price model, your property would be taxed based on what you paid when you bought it — permanently — until you sell. This mirrors California’s Proposition 13, passed in 1978, which froze assessments at purchase price and capped annual increases at 2 percent.
Who benefits most: Long-term homeowners whose property values have risen far above their purchase price. A homeowner who bought in 2010 for $180,000 and now holds a home worth $420,000 would pay taxes on $180,000 indefinitely.
Who benefits least: New buyers, renters, and lower-income Texans. As in California, this policy would give massive tax cuts to long-term owners at the expense of new buyers, who have to contend with higher home values while also paying full assessed-value taxes.
Part 2 — Eliminate Property Taxes Entirely Over Six Years
This is the more radical half. Texas currently collects approximately $80 billion per year in property taxes. Eliminating property taxes would require major changes to state and local funding structures.
Reducing property taxes has become Governor Greg Abbott’s signature issue as he seeks a fourth term. The six-year phase-out timeline in the proposition mirrors the framework Abbott has discussed publicly — though no formal legislation implementing it has been filed.
What $80 Billion in Property Taxes Actually Pays For
This is where the stakes become concrete. Texas property taxes fund:
- Public schools — the single largest recipient. Texas school districts rely on local property taxes for the majority of their operating budgets
- Community colleges — including tuition subsidies that keep costs low
- County hospitals and public health infrastructure
- Roads, drainage, and local infrastructure
- Sheriff departments, constables, and county courts
- Emergency services districts — fire, EMS, and 911
The proposition says the shortfall would be covered by “spending reductions.” It does not specify which services would be cut, by how much, or in what order.
The California Warning: What Prop 13 Actually Did
Supporters of purchase-price assessment frequently cite California’s Proposition 13 as a model. The historical record is worth examining carefully.
After California’s Prop 13 passed in 1978, the state fell from fifth in the nation in per-student school funding to 47th in the two decades that followed.
Before Prop 13, local property taxes made up 60 percent of California school funding, with the state contributing around 30 percent. After Prop 13, that relationship flipped — schools became almost entirely dependent on the state, losing local budget control and predictability.
School districts suffered nearly 50 percent cuts in revenues in the immediate aftermath. State and federal aid eventually made up for some of the loss — but not all of it, and not quickly.
Nearly three-quarters of California’s Prop 13 tax cut went to commercial property owners, particularly large businesses — not to homeowners.
Supporters argue Texas differs from California in key ways — including having no state income tax and a different school finance structure. Critics respond that Texas lacks the robust income tax structure that California has, adding uncertainty to where municipalities would make up the money.
What Would Actually Be Required to Implement This
Passing Proposition 1 changes nothing. For these ideas to become law, Texas would need:
For purchase-price assessment:
- Legislation passed by both chambers of the Texas Legislature
- A constitutional amendment approved by two-thirds of both the Texas House and Senate
- A statewide voter referendum on that constitutional amendment
For full property tax elimination:
- All of the above, plus
- A credible replacement revenue plan or equivalent spending cuts totaling ~$80 billion annually
- A complete restructuring of the Texas school finance system
- Years of phased implementation and transition funding
None of these steps have been initiated. The 2027 legislative session is the earliest any legislation could be introduced.
What Supporters Say
Property tax reform advocates argue the current system is fundamentally unfair — punishing homeowners for living in areas where values appreciate beyond their control and threatening long-term residents with effective displacement if taxes outpace income growth.
Governor Abbott has proposed allowing voters to submit petitions to roll back property tax rates through referendums — enabling residents to force votes on tax elimination for municipalities or school districts. Supporters frame this as returning fiscal control to taxpayers rather than allowing appraisal districts to effectively raise taxes without a public vote.
The strong passage of Proposition 1 signals that the Republican base believes the property tax cuts already passed in 2023 and 2025 did not go far enough.
What Critics Say
Critics note these cuts would primarily benefit wealthy homeowners and businesses, with little help for less-wealthy homeowners or renters — who make up nearly 38 percent of Texans and pay property taxes indirectly through rent but receive no direct relief from assessment freezes.
State revenue collections are slowing, meaning any property tax cut would likely eventually be paid for with cuts to public services or increases in sales taxes — which are more regressive than property taxes and fall harder on lower-income households.
School districts would suffer the most, as they are overwhelmingly reliant on property taxes. And unlike California, Texas lacks an income tax structure that could fill the gap quickly.
What Happens Next
Results will be used to shape the official Texas Republican platform at the party’s June 2026 convention and are expected to guide lawmakers during the 2027 legislative session.
The most realistic near-term outcome is not full property tax elimination — but rather new legislation in 2027 introducing purchase-price assessment caps and expanded homestead exemptions as incremental steps toward the broader goal the proposition expresses.
Watch for property tax reform bills to be among the first filed when the 2027 session opens in January 2027.
FAQs
Did Proposition 1 pass?
Yes. Proposition 1 passed with strong support in the March 3, 2026 Republican primary.
Does my property tax bill change now?
No. The proposition is non-binding. It does not change law or immediately affect any tax bill. Only legislative action — and in some cases a statewide constitutional amendment vote — can change Texas property taxes.
What is “assessed at purchase price” mean for me as a homeowner?
It means your taxable property value would be locked at what you paid when you bought your home — not its current market value. Long-term homeowners would see significant savings. New buyers would pay taxes on today’s higher purchase prices.
How much does Texas collect in property taxes?
Approximately $80 billion per year. That revenue funds public schools, community colleges, county hospitals, roads, sheriff departments, emergency services, and local courts.
What happened to school funding after California did something similar?
California fell from fifth in the nation in per-student school funding to 47th in the two decades following Prop 13’s passage in 1978. Texas supporters argue the situations differ, but critics say the structural risks are comparable.
When could this actually become law?
The earliest possible window is the 2027 Texas legislative session, which opens January 2027. Full implementation of either the purchase-price model or full elimination would require constitutional amendments and statewide voter approval — a multi-year process at minimum.
Published: March 5, 2026
This article is for informational and educational purposes only. It does not constitute legal, financial, or tax advice. Proposition results are non-binding advisory measures. Any policy changes require future legislative action and in many cases statewide voter approval of constitutional amendments.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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