Texas House Bill HB1092

Texas 2009 - 81st Regular

Caption

Relating to the authority of the voters of a county to allow the owners of certain real property to require that county and any municipal ad valorem taxes be imposed on that real property on the basis of a five-year average of the property's value.

Impact

If passed, HB 1092 would amend the Tax Code to include specific provisions for this alternative calculation method. The bill stipulates that voters must approve the implementation of this method through an election called by the county commissioners’ court, contingent on a petition by a designated number of voters. The changes are anticipated to affect the way local governments generate revenue from property taxes and impose additional requirements on tax assessment processes.

Summary

House Bill 1092 aims to grant voters in a county the authority to approve an alternative method for calculating ad valorem taxes on certain real properties. Under this proposal, property owners can choose to have their county and municipal taxes calculated based on a five-year average of their property’s taxable value rather than the current tax year's value. This bill seeks to provide relief to property owners who might otherwise face fluctuating tax assessments year-to-year due to changing property values.

Contention

While supporters argue that this bill would promote fairness in property tax assessments and provide more predictable tax burdens for property owners, opponents may raise concerns regarding the potential impact on local government revenues and their ability to fund essential services. Critics might argue that basing taxes on a five-year average could ultimately benefit wealthier property owners at the expense of the community as a whole. The debate surrounding the accountability of local governance and the implications of voter choice in taxation are likely to be central points of contention.

Considerations

Overall, the implementation of HB 1092 could reshape local tax policies significantly while posing challenges related to equitable tax burdens and the financial health of county and municipal budgets. With the proposed shift away from current-year property assessments, the bill places the onus on taxpayers to engage actively in the electoral process to secure their desired tax assessment method.