Texas House Bill HB1223

Texas 2023 - 88th Regular

• Filed: 1/9/23

Caption

Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem taxation.

Impact

The impact of HB 1223, if passed, would be significant for Texas homeowners as it seeks to create a more stable property tax environment. By capping the annual increase in appraised values, it would prevent drastic tax spikes that often occur with fluctuating market conditions. Homeowners could benefit from lower ad valorem tax bills, potentially making housing more affordable for many families in the state. However, it is contingent upon the approval of a proposed constitutional amendment that would authorize such limits.

Summary

House Bill 1223 aims to limit the increases in the appraised value of residential homesteads for ad valorem taxation in Texas. Specifically, the bill modifies existing tax code provisions to allow appraisal offices to raise the appraised value of a residential homestead each year by no more than 5% of the preceding year’s appraised value. This change is intended to protect homeowners from substantial tax increases due to volatile real estate market values, thereby providing greater financial predictability for Texas residents.

Sentiment

General sentiment toward HB 1223 appears to be cautiously optimistic among proponents who advocate for reducing the financial strain on homeowners. Supporters argue that the bill addresses a critical need for housing affordability, particularly in the face of rising property market values. However, there is concern from some stakeholders about the potential long-term effects on tax revenue and local governments, which rely on property taxes to fund vital services.

Contention

Notable points of contention regarding HB 1223 revolve around its dependency on voter approval of a related constitutional amendment. Critics express that the bill could undermine local government funding by restricting the revenue base, which could lead to cuts in essential public services. Opponents also argue that while the intention is to protect homeowners, there may be unintended consequences that could affect the broader economy and local government operations.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 23. Appraisal Methods And Procedures
  • Section: 23