Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of real property for ad valorem tax purposes to 110 percent or more of the appraised value of the property for the preceding tax year.
If enacted, this amendment would affect the Texas Constitution, particularly Article VIII, which governs property taxation. By enabling the legislature to cap property appraisals, the bill could help stabilize tax bills for homeowners, preventing steep increases that often accompany market value changes. This could have a significant impact on affordability for average homeowners, particularly in rapidly appreciating real estate markets, providing them with a form of protection against sudden tax hikes.
HJR43 proposes a constitutional amendment that would allow the Texas legislature to impose a cap on the maximum appraised value of real estate for ad valorem tax purposes. Specifically, it suggests that property appraisals could be limited to 110% or more of the appraised value from the previous tax year. This change aims to provide more predictability for property owners regarding their property taxes and could potentially alleviate some of the financial burdens associated with rising property valuations.
While the bill may be welcomed by property owners fearing excessive tax burdens, it may also face criticism from those who believe it could limit local government's ability to set appropriate tax rates that reflect community needs and fiscal requirements. Opponents may argue that capping appraisals could result in decreased revenues for local governments, potentially affecting funding for public services such as schools and infrastructure. The debate may center around the balance between property owner relief and the fiscal health of local governments.