Texas House Bill HJR13

Texas 2023 - 88th 2nd C.S.

• Filed: 6/30/23

Caption

Proposing a constitutional amendment providing for an exemption from ad valorem taxation for public school purposes of a dollar amount or a percentage, whichever is greater, of the market value of a residence homestead and providing for an adjustment of the limitation on the total amount of ad valorem taxes that may be imposed for those purposes on the homestead of a person who is elderly or disabled to reflect increases in the exemption amount.

Impact

The new exemption structure is expected to have significant implications for Texas property owners, particularly benefiting the elderly and disabled individuals who already face financial challenges. By reducing the tax burden placed on residences, the measure aims to offer these vulnerable populations a degree of financial relief. In terms of state law, the amendment necessitates changes to existing tax regulations and mandates legislative measures to compensate for potential revenue losses experienced by school districts as a result of the exemption. This could involve implementing formulas designed to safeguard educational funding despite the reduced tax intake from property taxes.

Summary

HJR13 proposes a constitutional amendment aimed at providing a significant exemption from ad valorem taxation for public school purposes related to residence homesteads. The proposed exemption will offer either a dollar amount of $40,000 or a percentage of 26.7% of the market value of a residence homestead, whichever is greater. Furthermore, the bill seeks to adjust the limitation on the total amount of ad valorem taxes imposed on homesteads owned by elderly or disabled individuals, allowing for these limitations to reflect increases in the exemption amount. This amendment, if passed, would be applicable from January 1, 2024, and affects tax years beginning on or after that date.

Sentiment

The sentiment surrounding HJR13 appears to be largely positive, particularly among advocates for social equity and financial relief for vulnerable residents. Supporters argue that the bill reflects a necessary step in ensuring that older and disabled residents can maintain their homes without being burdened by rising property taxes. However, there is also a contingent of concern regarding the broader impact on school financing, as local districts may experience reduced revenue streams. Therefore, the discourse around HJR13 highlights a tension between tax relief for individuals and the fiscal health of public education in Texas.

Contention

One notable point of contention revolves around the potential long-term implications for public school funding. Critics express concern that while the exemption appears beneficial to homeowners, it may inadvertently lead to funding shortfalls for school districts, which rely heavily on property taxes. The proposed amendment includes stipulations for adjusting tax rates to protect education funding, but critics remain wary of how effectively these measures can be implemented. As the bill is submitted for a vote on November 7, 2023, it is anticipated to stir significant debate about the balance between tax policy and the funding of public education in Texas.