Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem taxation.
Impact
If passed, this legislation would provide taxpayers with a degree of protection against significant increases in their property taxes by placing a cap on how much their appraised value can rise annually. This could lead to more predictable and manageable tax bills for homeowners, offering them financial relief amidst rising property values. Furthermore, it creates a localized approach where voters can decide on a ceiling for appraisals, promoting community empowerment regarding local tax policies.
Summary
SB218 seeks to impose limitations on the increases in the appraised value of residence homesteads for ad valorem taxation. The bill proposes that the appraised value for the tax year cannot exceed certain limits when increasing its valuation. The key change in the bill allows county commissioners to call for an election to authorize a higher percentage limitation that would apply to all taxing units within that county. This is significant as it empowers voters in determining how much their property taxes may increase each year, up to a maximum limit of 10%.
Contention
There are notable concerns regarding the potential implications of SB218. Supporters argue that the bill would provide much-needed tax relief for homeowners facing rapid property value increases, thereby maintaining affordability in housing. Conversely, critics may argue that such limitations could adversely affect local governments' revenue, impacting their ability to provide essential services and maintain infrastructure. The debate centers around the balance between protecting residents from rising tax burdens and ensuring that local governments can adequately fund their operations.
Enabling for
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of a residence homestead for ad valorem tax purposes to 105 percent or less of the appraised value of the property for the preceding tax year and to permit the voters of a county to establish a higher limitation not to exceed 110 percent on the maximum appraised value of a residence homestead in the county.