New Texas Agriculture Constitutional Amendments

New Constitutional Amendments

Voters in Texas approved of 17 new amendments to the state constitution. Here are the ones that affect Texas Agriculture.

Prop. 4 (SB 7 & SJR 66) - Amending the state constitution to authorize the state legislature to allocate the first $1 billion per fiscal year of sales tax revenue after it exceeds $46.5 billion to the state water fund and authorize the state legislature, by a two-thirds vote, to adjust the amount allocated.

Sen. Perry's constitutional amendment "dedicates $1 billion in state sales tax revenues per year to the Texas Water Fund. If approved by voters, Proposition 4 will direct up to $20 billion over 20 years toward addressing Texas’ water infrastructure challenges."

Prop. 4 focuses on water supplies, fixing failing water and wastewater infrastructure, and flood protection. 

Effective Date: September 1, 2027

Prop. 5 (HB 1399 & HJR 99) - Amending the state constitution to authorize the state legislature to pass a property tax exemption on animal feed held by the property owner for retail sale.

We tracked Prop. 5's enabling legislation since its filing, and now it's enshrined in the Texas Constitution. 

Prop. 5 and its legislation allows an ad valorum tax exemption for those who sell "feed for farm and ranch animals [or] feed for animals that are held for sale in the regular course of business." Those sellers are "entitled to an exemption from ad valorum taxation of the appraised value" of the feed for sale.

Effective Date: January 1, 2026

Prop. 10 (SB 467 & SJR 84) - Amending the state constitution to authorize the state legislature to provide a temporary homestead exemption for improvements made to residences destroyed by fire.

Prop 10 passed and enshrined SB 467, which "amends current law relating to a temporary exemption from ad valorem taxation of the appraised value of an improvement to a residence homestead that is completely destroyed by a fire." This tax exemption is temporary (does not permanently lower the appraisal. 

Effective date: Jan. 1, 2026

Prop. 13 (SB 4 & SJR 2) - Amending the state constitution to increase the property tax exemption from $100,000 to $140,000 of the market value of a homestead.

Prop. 13 does the following:

• Cuts school property taxes for homeowners: Proposition 13 significantly increases the homestead exemption and compresses school district tax rates, lowering the amount homeowners owe for school property taxes.

• Relief for Seniors and Disabled Homeowners: "For homeowners who are 65 or older or disabled, the combined exemption reaches $200,000. In practice, this translates to an average annual savings of $900 or more. In some districts, the larger exemption means seniors with modest home values don't have to pay school property taxes at all that year."

• Provides targeted relief, not across-the-board reform: The benefits are concentrated on homesteads (not businesses or non-homestead property) and do not cap appraised values or eliminate future tax increases from rising valuations.

A more in-depth overview can be found here: What the Increased Homestead Exemption Means for Texas Homeowners in 2025

Effective Date: The increased exemption applied to tax years beginning on January 1, 2025, and thereafter.