Texas House Bill HJR17

Texas 2021 - 87th 1st C.S.

Caption

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.

Impact

If enacted, HJR17 would directly affect the taxation framework in Texas, particularly relating to real property. By allowing the legislature the authority to set a cap on appraised values, the amendment is designed to ease the financial burden on homeowners and prevent potential tax hikes associated with increasing property values. Supporters argue that this is essential for maintaining affordability in the housing market, especially for low- and fixed-income residents who may struggle under rising tax obligations.

Summary

House Joint Resolution 17 (HJR17) proposes a constitutional amendment that empowers the Texas Legislature to place a cap on the maximum appraised value of real property for ad valorem tax purposes. Under this amendment, the maximum appraised value can be limited to 103.5% of the previous year's appraised value. This change aims to provide more financial predictability for property owners regarding tax assessments and potentially curb rising property taxes, which have become a concern for many residents in Texas.

Contention

Nevertheless, the proposed amendment is not without controversy. Some critics argue that limiting appraised values could hamper local governments' ability to generate revenue necessary for public services such as education and infrastructure maintenance. There are concerns that this shift might lead to funding shortfalls that could adversely affect community programs. Additionally, discussions around fairness and equity in taxation have arisen, as property valuations reflect the market realities that, when either inflated or capped, can disproportionately affect various segments of the population.