Harris County plan would link home tax exemptions to sales tax

The measure would exempt part of eligible homestead property’s value from Harris County property taxes. It would cover eligible homestead property in the special district covering Harris County and apply only to county property taxes. The measure would require approval by at least two-thirds of both legislative chambers and approval by county voters. The exempt amount would be determined each year based on net proceeds from the local sales tax; any value above that amount would remain taxable. The exemption would apply to tax years beginning in 2027 and ending in 2034.

The measure would impose a local sales tax and set rules for claiming the property tax exemption. The sales tax would apply within the special district covering Harris County. The application and renewal rules would apply to people seeking this property tax exemption. The ballot describes a 1 percent sales tax. A person generally would need to apply for the exemption, but someone who received a county homestead exemption for the same property in the prior tax year and remains eligible would not need to apply again to receive it. After an exemption is granted, it would renew automatically while the person occupies the home as a homestead and remains eligible; the person must notify the local tax official if they become ineligible. The sales tax would run from January 1, 2028, through December 31, 2032.