Proposition 5 – Small City Downtown Property Amendment

TEXAS – Proposition 5 – SJR 44

Brief background information: (provided by the Texas Legislative Council)

The Main Street Revitalization Improvement Program and Downtown Revitalization Program of the Texas Department of Agriculture assist cities in revitalizing their downtown areas. However, in some smaller communities with slower growth property owners cannot afford to make improvements or can’t afford the taxes that come with higher appraisals on developed property. Unrenovated buildings and vacant lots lead to less development and slum conditions.

The amendment aims to aid in the elimination of slum and blighted conditions in less populated communities and promote rural economic development. Small towns that participate in the Main Street or Downtown programs would be able to vote to give tax breaks — a five-year freeze on taxes — for some downtown properties.

Pro and Con– information provided by Jacci Howard Bear of About.com

Why Vote for Prop 5 If approved, Proposition 5 creates incentives for property owners to improve downtown property and buildings which, in conjunction with other revitalization projects, improves the economic growth and tourism for the city.

Why Vote Against Prop 5When property value increases due to improvements funded by Texas Department of Agriculture grant programs, property owners should be required to pay taxes on the increased value.

To make up for the reduced taxes imposed on some property owners, other taxpayers could see an increase in taxes.