McALLEN, Texas (Border Report) — Texas voters are being asked to weigh in on a significant statewide proposal that could impact property taxes related to border barriers. Proposition 17, appearing on Tuesday’s ballot, seeks voter approval to exempt property taxes on lands where border structures have been constructed.

If adopted, Proposition 17 would amend the Texas Constitution to grant property tax exemptions to landowners whose properties are utilized for border barrier projects, whether these are state or federal initiatives.

The text of Proposition 17 states: “The constitutional amendment to authorize the legislature to provide for an exemption from ad valorem taxation of the amount of the market value of real property located in a county that borders the United Mexican States that arises from the installation or construction on the property of border security infrastructure and related improvements.”

Approval of this measure would ensure that property values in Texas counties along the Mexico border are not inflated due to the presence of border barrier structures or related improvements.

A memo from the Legislative Budget Board in Austin, dated May 17, clarifies that the proposal would entitle landowners to a property tax exemption equivalent to the appraised value increase from any border security infrastructure improvement. This applies to properties involved in a qualified border security infrastructure agreement or those with a recorded easement granted to either the State of Texas or the United States for border security purposes.

A loss in tax assessment could cost school financial districts, according to the memo, which says: “these costs are not expected to be significant.”

But it could result in higher taxes in cities and counties.

“If cities, counties, and special districts did not adopt higher rates, local levies would be reduced. If those jurisdictions adopted higher tax rates, the initial revenue loss from the exemption would be offset by increased tax levies from owners of non­exempt property and slightly reduced tax savings from owners of exempt property,” the memo says.

The Texas Comptroller of Public Accounts reports current border infrastructure construction projects throughout South Texas in the counties of Cameron, Starr, Zapata, Webb, Maverick, and Val Verde, which “could be subject to the exemption,” the Legislative Budget Board says.

The issue was first raised in Texas in early 2020 when South Dakota contractor Tommy Fisher, CEO of Fisher Sand & Gravel Company, built a $42 million private border wall on a sliver of land that had been owned by a Rio Grande Valley farmer in Mission, Texas. The border wall was mostly financed by Fisher but over $1 million came from funds crowdsourced through the controversial group We Build the Wall.

Questions, at the time, surfaced over whether the farm land would be taxed at a higher rate based on the $42 million structural improvement. However, Hidalgo County did not tax it.

The proposition is one of 17 on the statewide ballot.

On Wednesday, Texas Secretary of State Jane Nelson said during the first week of early voting, there had been 561,819 ballots cast in person and 23,510 votes by mail. 

Early voting began Oct. 20 and ends Friday. Election Day is Tuesday.

Sandra Sanchez can be reached at SSanchez@BorderReport.com.