Texas House Bill HJR55

Texas 2009 - 81st Regular

Caption

Proposing a constitutional amendment authorizing the legislature to permit the voters of a county to allow county and any municipal ad valorem taxes to be imposed on certain real property on the basis of a five-year average taxable value.

Impact

If enacted, this amendment would introduce new standards for property tax assessments by enabling localized control over how taxes are calculated in relation to property values. The proposed five-year averaging approach could result in lower tax bills for property owners during times of property value decline, providing some relief from steep annual property tax increases. This shift could significantly impact local governments' revenue structures, as their income from property taxes would become more volatile depending on the broader economic conditions affecting property values.

Summary

HJR55 is a joint resolution proposing a constitutional amendment that would allow the Texas legislature to enable voters in individual counties to determine if county and municipal ad valorem taxes on certain real properties can be assessed based on a five-year average of the taxable value. This proposal seeks to provide property owners a method to potentially stabilize their tax assessments, potentially making it easier for them to manage their financial obligations related to property ownership. The proposed amendment aims to create a more predictable tax environment for property owners, especially in fluctuating real estate markets.

Contention

There may be notable contention surrounding HJR55, primarily regarding the implications for local governments' ability to fund public services adequately. Critics may argue that allowing property owners to utilize a five-year average could ultimately restrict the revenue needed for essential services such as education, public safety, and infrastructure development. There could also be debates about the fairness of such a system, with concerns that it may disproportionately benefit certain property owners over others, particularly in rapidly appreciating areas versus stagnant or declining ones. Such discussions would likely involve various stakeholders including local governments, taxpayer advocacy groups, and property owners.