Texas House Bill HJR117

Texas 2011 - 82nd Regular

• Introduced: 3/7/11
• Refer: 3/10/11

Caption

Proposing a constitutional amendment relating to the eligibility of property to continue to receive a residence homestead exemption from ad valorem taxation for not more than three years after the property ceases to be the owner's principal residence if the property is being offered for sale.

Impact

If enacted, HJR117 would amend Section 1-b, Article VIII of the Texas Constitution, thereby changing the eligibility criteria for the residence homestead exemption. This could significantly impact property owners who may be in transition, helping them avoid the immediate tax implications typically faced when their primary residence is sold. The legislation is designed to support homeowners in maintaining a stable financial situation while they navigate the often lengthy property selling process, potentially boosting the real estate market as well.

Summary

HJR117 is a joint resolution proposing a constitutional amendment in Texas that extends the eligibility of property to continue receiving the residence homestead exemption from ad valorem taxation. This extension can last up to three years after the property owner ceases to occupy the property as their principal residence, provided that the property is being actively offered for sale and not leased or used for any business purposes. The intent of this bill is to offer financial relief to homeowners during the process of selling their properties by allowing them to maintain tax exemptions during the transition period.

Sentiment

The sentiment surrounding HJR117 appears to be largely positive among proponents who argue that this measure provides necessary support for homeowners facing financial strain during the sale of their homes. They view it as a pragmatic approach that recognizes the reality of the housing market. However, some concerns have been raised about the long-term implications for state revenue from property taxes, as maintaining these exemptions could adversely affect local funding mechanisms reliant on property tax income.

Contention

A notable point of contention is the potential impact on local government funding. Critics of the bill may argue that extending the homestead exemption could reduce essential tax revenues that are vital for local services. Furthermore, while supporters highlight the relief it offers to homeowners, detractors may raise a warning about enabling properties to remain off the tax rolls for extended periods, which could detract from the overall tax base. Such discussions emphasize the balance needed between supporting individual homeowners and maintaining adequate funding for community services.