Texas Senate Bill SJR10

Texas 2009 - 81st Regular

• Filed: 11/10/08

Caption

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.

Impact

If passed, this amendment would have a significant impact on the way property taxes are assessed and collected at the county level, especially in times of increasing property values. By capping appraisals, it aims to alleviate the financial burden on homeowners, allowing them to predict and manage their tax liabilities more effectively. The allowance for local voter input on establishing higher limits could empower communities to have a say in their tax structures, potentially fostering a sense of local governance and involvement.

Summary

SJR10 proposes a constitutional amendment aimed at modifying the ad valorem tax rates applied to residence homesteads in Texas. Specifically, the bill seeks to grant the legislature the authority to limit the maximum appraised value of a residence homestead to 105% or less of the property's appraised value from the previous tax year. Furthermore, it allows county voters to establish a higher limit, not to exceed 110%, through a local election. This proposal is designed to provide property tax relief to homeowners by controlling rising property appraisals which can lead to higher tax bills.

Contention

There are notable points of contention surrounding SJR10. Supporters argue that the bill would provide essential tax relief to homeowners and prevent sudden spikes in property taxes that are often difficult for families to manage. Conversely, critics may argue that this could limit funding for essential services that rely on property tax revenue, placing an undue burden on local governments. The proposed changes may also raise concerns about the ongoing ability of counties to meet their financial obligations if they cannot adjust property tax rates to reflect increasing property values.