Arlington tax break proposal depended on sales-tax proceeds and voter approval

The failed proposal would exempt part of eligible homes’ value from City of Arlington property taxes. It would cover residents of the special district whose homes are within that district. It would apply only to City of Arlington taxes and would be added to other home exemptions; value above the exempt amount would remain taxable. The proposal required a two-thirds vote in both legislative chambers and approval by more than half of votes cast in the city referendum; it failed on House reconsideration. The exemption amount would be set each year based on local sales and use tax proceeds. If approved, it would apply to tax years beginning January 1, 2027, through December 31, 2039.

The city election superintendent would submit the proposal to voters in a referendum. Only city voters who live within the special district would vote on the proposal. The bill failed on House reconsideration, so the proposed referendum and exemption are not in effect based on the recorded action history. The election was scheduled for November 3, 2026. If voters rejected the proposal or the election was not held as required, it would not take effect and would be repealed 365 days after that election date.