Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a residence homestead for ad valorem tax purposes for the first tax year that the owner of the property qualifies the property for a residence homestead exemption is the market value of the property and that, if the owner purchased the property, the purchase price of the property is considered to be the market value of the property for that tax year and to limit increases in the appraised value of the homestead for subsequent tax years based on the market value of all new improvements to the property.
Impact
If approved, this amendment would significantly alter the way property taxes are calculated for new homeowners in Texas. It aims to mitigate the financial burden on homeowners by aligning the appraised value with current market conditions at the time of purchase. This change could lead to more predictable and potentially lower property tax assessments for individuals who qualify for the homestead exemption, thereby promoting housing affordability and economic stability for residents in the area.
Summary
SJR15 proposes a constitutional amendment that authorizes the Texas Legislature to establish the appraised value of a residence homestead for ad valorem tax purposes. Specifically, it states that for the first tax year in which an owner qualifies for a residence homestead exemption, the appraised value will be the market value of the property. Additionally, if the property was purchased by the owner, the purchase price will be regarded as the market value for that tax year. The bill also seeks to limit increases in the appraised value based on the market value of new improvements made to the property in subsequent tax years.
Contention
Discussions surrounding SJR15 could involve debates over the implications of such an amendment on existing tax structures and revenue for local governments. Some stakeholders might express concerns that limiting the appraised value could reduce vital funding for public services, as property taxes are a significant revenue source. Proponents, however, argue that the formula proposed in SJR15 will level the playing field for new homeowners, allowing them to benefit from a tax structure that is both reasonable and reflective of actual property market conditions.
Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a residence homestead for ad valorem tax purposes for the first tax year that the owner of the property qualifies the property for a residence homestead exemption is the market value of the property and that, if the owner purchased the property, the purchase price of the property is considered to be the market value of the property for that tax year and to limit increases in the appraised value of the homestead for subsequent tax years based on the inflation rate.
Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a residence homestead for ad valorem tax purposes is the market value of the property for the first year that the owner qualified the property for a homestead exemption or, if the owner purchased the property, the purchase price of the property.
Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of a residence homestead for ad valorem tax purposes to the appraised value of the property when it was first qualified as a residence homestead, plus the value of subsequent improvements.
Proposing a constitutional amendment to authorize the legislature to establish a limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes.
Proposing a constitutional amendment to authorize the legislature to establish a limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of real property for ad valorem tax purposes to 103.5 percent or more of the appraised value of the property for the preceding tax year.