Taylor County officials warn proposed homestead amendment could cut $1.6M–$2.0M from county revenues

Taylor County staff told commissioners at a May 28, 2026 workshop that Governor Seth’s proposed constitutional amendment to expand homestead exemptions could sharply reduce local property‑tax revenue and leave the county dependent on an appropriated trust fund with no guaranteed offset formula. County presenters estimated a 2027 general‑fund loss of about $1.33 million and an MSTU shortfall of about $300,480 under a $150,000 homestead cap (combined roughly $1.63 million). Under a $250,000 cap staff modeled a larger combined loss of just over $2.02 million.

The workshop, convened by the Taylor County Board of County Commission, was informational only. County staff summarized the proposal’s three principal changes: raising the homestead exemption from about $50,000 to $150,000 in 2027 and $250,000 in 2028 with a legislative mandate to pursue full elimination of homestead taxation; reducing non‑homestead assessment caps from 10% to 5% beginning Jan. 1, 2027 for certain residential and commercial property; and constitutionally restricting permissible uses of ad valorem revenues to public safety, education, infrastructure, natural resources, debt service and retirement obligations.

Staff warned that the amendment would direct the Legislature to create a trust fund to issue grants to local governments to offset revenue losses but provides no allocation methodology, funding formula or entitlement guarantee. “The trust fund is a constitutional directive to the Legislature, not an entitlement,” staff cautioned, noting its similarity to existing offset statutes that remain subject to annual appropriations.

Commissioners and staff pressed for clarity on how the constitutional language would treat school funding, with questions about whether school boards would effectively be exempted or directly eligible to receive ad valorem revenues under the restricted‑use language. County staff said the drafting left practical questions unresolved, and that prior proposals historically included explicit school exemptions.

Speakers also discussed local options to replace lost revenue and found few feasible alternatives. Presenters said Taylor County appears to be at or near the maximum discretionary sales‑tax rate and that creating new general levies would be legally constrained; special assessments require specific studies tying charges to particular benefits. County officials emphasized that rural counties face particular vulnerability to these revenue shifts and that final impacts will depend on legislative decisions and implementation details.

Because the amendment would reach the ballot only after the Legislature passes a joint resolution by a three‑fifths supermajority (72 of 120 House members and 24 of 40 senators), staff outlined the special‑session timeline: SJR 2‑F and Senate Bill 4‑F were scheduled for appropriations committee hearings on June 1 with possible floor votes June 2, and the special session runs through June 3. Staff encouraged residents to contact state representatives quickly; the board said it will circulate a two‑page informational sheet and provide office numbers for lawmakers.

The workshop produced no formal action. Commissioners asked staff to continue monitoring developments, to refine county revenue‑impact estimates as new legislative language becomes available, and to share contact information so residents can weigh in during the special session. The meeting concluded after brief other business, including issuance of the county’s first 100% military‑disabled veteran boat‑ramp sticker.