Texas House Bill HB96

Texas 2021 - 87th Regular

Caption

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

Impact

If enacted, HB 96 would adjust the parameters under which residence homesteads are assessed for ad valorem tax, clarifying that for new purchasers, the appraised value may be pegged to the purchase price rather than historical assessments. This change assists those entering the housing market, particularly first-time buyers, by ensuring they are not penalized through unrealistic tax hikes based on previous valuations. The amendments also clarify conditions under which current exemptions can be maintained, thus aiming to safeguard taxpayers during transitions of property ownership.

Summary

House Bill 96 seeks to amend certain provisions in the Texas Tax Code concerning the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes. The bill aims to provide homeowners with a clear framework that dictates how the appraised value of their homestead may rise, primarily linking it to the purchase price of the property if the owner qualifies for a homestead exemption. This approach is intended to protect homeowners from significant annual increases in property taxes, thereby enhancing housing stability for residents.

Contention

The bill likely fosters debate regarding the implications of limiting increases in appraised values. Proponents advocate for increased affordability and predictability in property taxes, particularly as many Texan families face economic pressure from rising home values. However, opponents may argue that such limitations could constrain local governments' abilities to generate revenue through property taxes, which could impact community services and infrastructure projects. This dichotomy underscores the ongoing tension between property tax reforms aimed at protecting homeowners and the financial needs of local jurisdictions.