Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem taxation.
The impact of this bill, if passed, would be significant for homeowners across Texas. By capping the increase in appraised values, residents may find it less challenging to manage their property taxes, leading to enhanced affordability in maintaining home ownership. This becomes particularly relevant as property markets fluctuate, potentially preventing sudden spikes in tax rates that can burden families and individuals on fixed incomes.
SB320 aims to limit the increase in the appraised value of a residence homestead for ad valorem taxation. The bill amends Section 23.23(a) of the Texas Tax Code, allowing appraisal offices to increase the appraised value of a residence homestead by no more than 10% of its appraised value for the previous year, alongside any new improvements. This measure intends to provide financial relief and ease the tax burden on homeowners, particularly in the face of rising property values.
A notable point of contention surrounds the requirement that this bill's enactment is contingent upon the approval of a constitutional amendment proposed by the 89th Legislature in 2025. If voters do not approve this amendment to permit the legislature to impose lower limits on appraised values, SB320 will not take effect. This clause introduces a layer of uncertainty, with opponents arguing that it complicates the issue by creating dependence on voter sentiment instead of legislature authority.
SB320's legislative journey is still in progress as it was filed on November 12, 2024, and has yet to advance through committee or receive further votes. The discussions surrounding this bill are expected to intensify as the proposed constitutional amendment is also taken into account.