Texas House Bill HB1546

Texas 2009 - 81st Regular

Caption

Relating to the authorization for a local option election in Montgomery County to limit the maximum appraised value of a residence homestead to 103 percent or more of the appraised value of the property for the preceding tax year for purposes of ad valorem taxation by each political subdivision all of the territory of which is located in the county.

Impact

The bill modifies Section 23.23 of the Texas Tax Code to allow for such an election, enabling the county commissioners court to present this choice to local voters. If a majority of voters approve the limitation during a general election, it would take effect starting with the following tax year. The bill creates a mechanism for voters to amend or repeal this limitation in the future, ensuring that constituents retain some control over their property tax obligations.

Summary

House Bill 1546 is a legislative proposal aimed at implementing a local option election in Montgomery County to set limitations on the maximum appraised value of a residence homestead. Under the provisions of this bill, the maximum appraised value for ad valorem taxation purposes could be capped at 103 percent of the appraised value from the preceding tax year. This local option would provide residents the opportunity to vote on establishing a percentage limitation, thereby influencing their property tax assessments in the county.

Contention

Supporters argue that this bill could provide much-needed relief to residents facing rising property taxes, enabling them to manage their tax liabilities more effectively in an era of increasing housing costs. However, there may be opposition as critics could view the bill as insufficient, possibly arguing that a cap at only 103 percent still allows for substantial year-over-year increases in appraisal values, which may not adequately reflect the financial challenges residents face. Furthermore, there may be concerns regarding the long-term implications of limiting property tax revenues for local governments and essential public services.