Texas House Bill HJR12

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 more of the appraised value of the property for the preceding tax year.

Impact

Should HJR12 be ratified, it would directly influence how property taxes are calculated, particularly for residential homesteads. By capping the allowable growth in appraised values, the bill seeks to protect homeowners from significant tax increases during periods of rising property values. This could help maintain affordability for residents, especially in rapidly gentrifying areas where property values may escalate dramatically. However, critics may argue that such limitations could restrict local governments' ability to generate revenue necessary for public services, potentially leading to budget shortfalls.

Summary

HJR12 proposes a constitutional amendment that would empower the Texas legislature to limit the maximum appraised value of a residence homestead for ad valorem tax purposes. Specifically, the proposed amendment allows the legislature to set this limit to 105 percent or more of the appraised value from the previous tax year. This change aims to provide greater stability and predictability in property tax assessments for homeowners, potentially preventing abrupt increases in property tax burdens due to fluctuations in market values.

Contention

The proposal is likely to generate debate among lawmakers and stakeholders. Proponents will argue that it is a necessary measure to safeguard homeowners from unpredictable tax liabilities that can arise from market fluctuations. In contrast, opponents might contend that this legislative power could lead to reduced funding for essential services like education and infrastructure, as it constrains local governments' revenue sources. Additionally, there may be concerns regarding how this amendment will influence the overall fairness of the property tax system, particularly in relation to non-homestead properties.