Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem taxation.
The implementation of this bill is contingent upon the approval of a constitutional amendment that permits such limitations on appraised values. If the amendment fails, HB17 will not take effect, underscoring the interconnectedness of legislative measures and constitutional provisions in Texas tax law.
The bill's provisions would directly affect the property tax burdens of homeowners across Texas, particularly in rapidly growing areas where property values have surged. By restricting annual increases in appraised value, HB17 is intended to provide greater financial predictability for residents, allowing them to better manage their housing costs amidst fluctuating real estate markets. Furthermore, this change could have implications for local government revenue, as it potentially limits the amount of funds that can be generated through property taxes.
House Bill 17 seeks to amend the Texas Tax Code to limit increases in the appraised value of a residence homestead for ad valorem taxation. Specifically, the bill proposes that appraisal offices may only increase the appraised value of a residence homestead to an amount not exceeding the lesser of the most recent determined market value or a calculated increase based on the previous year's appraised value. This legislative change aims to protect homeowners from significant tax increases due to sudden spikes in property valuations.
While the bill has garnered support from homeowners advocating for tax stability, it may face opposition from local governments concerned about reduced tax revenue. Critics might argue that restricting appraised values could hinder local services that rely on property tax funding, such as education and public safety. The potential impact on local budgets raises significant questions about how municipalities will adapt to these changes if the bill passes.