Texas REALTORS® Helps Homeowners Win $1M in Tax Refunds

Successful legal actions by Texas REALTORS® against school districts resulted in refunds for over 2,100 homeowners, reinforcing property owners’ rights and deterring future unlawful tax practices.

In 2015, Texas voters passed a constitutional amendment increasing the homestead exemption for public-school tax valuations from $15,000 to $25,000. Texas REALTORS® played a key role in passing this measure, providing significant benefits to homeowners. However, three school districts attempted to undermine this amendment to the detriment of property owners. Texas REALTORS® intervened.

Backed by the association’s Issues Mobilization/Political Advocacy Fund, Texas REALTORS® legal and governmental affairs staff, along with outside counsel, filed lawsuits in 2016 against the school districts of Kilgore, Dumas, and White Deer. The lawsuits aimed to protect the local option homestead exemption and refund taxes wrongfully collected due to the school districts’ illegal actions.

The school districts challenged these legal efforts, leading to multiple court hearings, discovery disputes, and proceedings at three courts of appeals. Despite these challenges, Texas REALTORS® secured favorable rulings at every stage.

After six years of litigation, the school districts agreed to settle the claims. The lawsuits concluded with a class-action settlement.

Settlement Results

Texas REALTORS®’ efforts resulted in over 2,100 refunds across the three school districts, totaling nearly $1 million:

• Kilgore ISD: 1,447 refunds totaling $753,256
• Dumas ISD: 735 refunds totaling $233,295
• White Deer ISD: The number of affected homeowners was too low to proceed with a class-action process, so the school district paid the named plaintiff a refund of $452.

Broader Impact

This outcome is a significant win for individual property owners who received refunds for improperly collected property taxes. It also benefits property owners across Texas. The litigation resulted in multiple appellate decisions favoring property owners over taxing jurisdictions, deterring similar actions in the future.

To learn more, visit texasrealestate.com.