Texas House Bill HJR75

Texas 2021 - 87th Regular

Caption

Proposing a constitutional amendment authorizing the legislature to provide for the appraisal of certain real property for ad valorem tax purposes based on its purchase price, exempting all tangible personal property in this state from ad valorem taxation, and authorizing the legislature to permit legislators to appoint members of the board of equalization for an appraisal entity.

Impact

If enacted, this amendment would impact state laws regarding real property taxation significantly by limiting the appraisal of residential properties to either their purchase price or their market value, whichever is lower, for a specified period after purchase. This is intended to benefit new homeowners by potentially lowering their tax burden in the initial years of ownership. The change could stimulate the housing market by making home purchasing more appealing and affordable, especially for first-time buyers.

Summary

HJR75 proposes a constitutional amendment that changes the appraisal standards for certain real property for ad valorem tax purposes based on its purchase price. It aims to exempt all tangible personal property from ad valorem taxation and allows the legislature to appoint members to the board of equalization for appraisal entities. This would represent a significant shift in how property taxes are determined in Texas, reflecting a growing movement towards simplifying tax assessments and making property ownership more affordable.

Contention

One of the notable points of contention surrounding HJR75 revolves around concerns about potential revenue losses for local governments that rely on property taxes for funding essential services. Critics argue that exempting all tangible personal property from ad valorem taxes could lead to increased financial strain on municipalities. Additionally, there are concerns regarding the legislative oversight over the board of equalization, as critics feel that legislative appointments could undermine the independence of the appraisal process, leading to possible biases in property assessments.