Texas Senate Bill SJR42

Texas 2021 - 87th Regular

Caption

Proposing a constitutional amendment authorizing the governing body of a political subdivision to adopt a residence homestead exemption from ad valorem taxation of either a percentage or a portion, expressed as a dollar amount, of the market value of an individual's residence homestead.

Impact

The amendment to Section 1-b(e) of Article VIII of the Texas Constitution enables local governments to determine their own homestead exemption policies within established guidelines. The proposed changes include a cap on the percentage of exemption, set at twenty percent, as well as a minimum exemption amount of $5,000. This flexibility empowers local bodies to adopt exemptions that could significantly reduce property tax liabilities for residents, thus influencing housing affordability and local economic conditions.

Summary

SJR42 proposes a constitutional amendment that allows the governing body of a political subdivision in Texas to adopt a residence homestead exemption from ad valorem taxation. Specifically, the exemption may be a percentage of the market value or a fixed dollar amount, which supports homeowners by reducing the tax burden on their primary residences. This measure aims to assist eligible adults, both married and unmarried, including those living alone, in managing their financial obligations related to property taxes.

Contention

Potential points of contention surrounding SJR42 may arise from the balance of local control and state oversight in taxation matters. Proponents argue that the amendment fosters local governance by giving communities the ability to tailor their tax exemptions based on specific needs and economic circumstances. Detractors, however, may raise concerns about unequal benefits across different political subdivisions, possibly leading to disparities in funding for essential services like education and infrastructure, thereby impacting the overall equity in the tax system.