Texas House Bill HJR11

Texas 2011 - 82nd Regular

Caption

Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of certain residence homesteads for ad valorem tax purposes to the purchase price of the property and to limit the frequency of reappraisals of residence homesteads.

Impact

If enacted, HJR11 would alter the state's tax code by potentially lowering ad valorem tax burdens for new homeowners and curtailing frequent reappraisals, which can lead to increases in property taxes. This change could encourage home purchasing by providing a clearer financial forecast for new owners, promoting stability in housing costs. The bill also implies a temporary provision that would take effect on January 1, 2012, applying to tax years starting thereafter, thereby suggesting an immediate and focused impact on the housing market and tax assessments.

Summary

HJR11 proposes a constitutional amendment that would empower the Texas legislature to limit the maximum appraised value of certain residential homesteads for ad valorem tax purposes to the purchase price of the property. Additionally, it seeks to restrict the frequency of reappraisals for these homesteads. By setting the appraised value at the purchase price, the legislation aims to provide financial relief to homeowners, particularly in times of rising property values. This provision targets bona fide purchasers who hold exemptions under state law for the year following their property purchase.

Sentiment

The sentiment surrounding HJR11 appears to be supportive among homeowners and potential buyers, who may appreciate an initiative aimed at reducing property tax liabilities. However, there may be concerns among local governments and taxation bodies who could view the limitation on appraisal frequency and value as a constraint on their ability to generate necessary revenues. Overall, advocates see this as a proactive step for affordability, while detractors might worry about the implications for state funding and local government budgets.

Contention

Notable points of contention revolve around the amendment's implications for local taxation authority and revenue. Critics of HJR11 may argue that capping appraisals and limiting reappraisals undermines local control over property tax assessments and could reduce funding for essential local services. Proponents counter that the proposed changes are necessary to protect homeowners from skyrocketing property tax bills and that it facilitates home ownership. The debate highlights ongoing tensions between property owners' rights and the fiscal realities faced by local governments.