Proposing a constitutional amendment relating to the eligibility of property to continue to receive a residence homestead exemption from ad valorem taxation for not more than three years after the property ceases to be the owner's principal residence if the property is being offered for sale.
Impact
If enacted, HJR117 would amend Section 1-b, Article VIII of the Texas Constitution, thereby changing the eligibility criteria for the residence homestead exemption. This could significantly impact property owners who may be in transition, helping them avoid the immediate tax implications typically faced when their primary residence is sold. The legislation is designed to support homeowners in maintaining a stable financial situation while they navigate the often lengthy property selling process, potentially boosting the real estate market as well.
Summary
HJR117 is a joint resolution proposing a constitutional amendment in Texas that extends the eligibility of property to continue receiving the residence homestead exemption from ad valorem taxation. This extension can last up to three years after the property owner ceases to occupy the property as their principal residence, provided that the property is being actively offered for sale and not leased or used for any business purposes. The intent of this bill is to offer financial relief to homeowners during the process of selling their properties by allowing them to maintain tax exemptions during the transition period.
Sentiment
The sentiment surrounding HJR117 appears to be largely positive among proponents who argue that this measure provides necessary support for homeowners facing financial strain during the sale of their homes. They view it as a pragmatic approach that recognizes the reality of the housing market. However, some concerns have been raised about the long-term implications for state revenue from property taxes, as maintaining these exemptions could adversely affect local funding mechanisms reliant on property tax income.
Contention
A notable point of contention is the potential impact on local government funding. Critics of the bill may argue that extending the homestead exemption could reduce essential tax revenues that are vital for local services. Furthermore, while supporters highlight the relief it offers to homeowners, detractors may raise a warning about enabling properties to remain off the tax rolls for extended periods, which could detract from the overall tax base. Such discussions emphasize the balance needed between supporting individual homeowners and maintaining adequate funding for community services.
Enabled by
Relating to the eligibility of property to continue to receive a residence homestead exemption from ad valorem taxation for not more than three years after the property ceases to be the owner's principal residence if the property is being offered for sale.
Relating to notice by an appraisal district to an owner of residential property of the owner's potential eligibility for a residence homestead exemption from ad valorem taxation of the property and the manner in which certain owners may apply for the exemption.
Proposing a constitutional amendment to exempt from ad valorem taxation 50 percent of the appraised value of the residence homestead of a person who has received a residence homestead exemption on the property for at least the preceding 10 years.
Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.
Relating to an exemption from ad valorem taxation of 50 percent of the appraised value of the residence homestead of a person who has received a residence homestead exemption on the property for at least the preceding 10 years.
Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a residence homestead for ad valorem tax purposes is the market value of the property for the first year that the owner qualified the property for a homestead exemption or, if the owner purchased the property, the purchase price of the property.
Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a residence homestead for ad valorem tax purposes for the first tax year that the owner of the property qualifies the property for a residence homestead exemption is the market value of the property and that, if the owner purchased the property, the purchase price of the property is considered to be the market value of the property for that tax year and to limit increases in the appraised value of the homestead for subsequent tax years based on the inflation rate.
Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.
Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.