Texas House Bill HJR22

Texas 2021 - 87th 3rd C.S.

Caption

Proposing a constitutional amendment to appropriate money from the economic stabilization fund to the foundation school fund and use the money to finance a temporary increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and a temporary reduction in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect the increased exemption amount.

Impact

This proposed amendment is structured to provide significant financial relief to homeowners, particularly senior citizens and disabled persons, by lowering their property tax burden. The financial strategy aims to stabilize funding for public education while giving temporary tax relief to vulnerable populations. If approved, this change would directly impact local school funding mechanisms and could potentially lead to adjustments within budgeting frameworks to accommodate the temporary nature of the amendments. The bill outlines that the new exemptions will expire after the 2023 tax year, thus creating a limited window for its benefits.

Summary

HJR22 proposes a constitutional amendment to appropriate $5 billion from the economic stabilization fund to the foundation school fund. The intent of this amendment is to finance a temporary increase in the exemption amount for residence homesteads from ad valorem taxation imposed by school districts. Specifically, for the 2023 tax year, the bill seeks to increase the exemption on the market value of homesteads from $25,000 to $105,000. Additionally, it proposes a temporary reduction in the limit on ad valorem taxes for the residence homesteads of elderly or disabled individuals, aligning it with the increased exemption amount.

Contention

Opponents of the measure may raise concerns regarding the sustainability of funding for public education in light of the temporary relief provided by the exemption increases. There may be debates on whether reallocating funds from the economic stabilization fund to the foundation school fund is the most effective long-term solution for addressing school funding needs. Additionally, the provision for elderly and disabled persons specifically may foster discussions on equity and targeted financial aid versus broader tax reform strategies within Texas. As such, the passage of HJR22 could be seen as a critical point of discussion regarding property taxation and its implications for various demographics in the state.