Proposing a constitutional amendment to require that taxation be fair and equal and that the full cash value of property, calculated only when property is purchased, constructed, or exchanged, be used for purposes of ad valorem taxation.
Impact
Should HJR156 be enacted, it would have a significant impact on how property taxes are calculated in the state. The bill introduces a more uniform assessment process that could potentially lower taxes for some property owners while raising them for others, depending on current market valuations versus the reset point in 2009. This shift is intended to create more equity in the tax burden but could lead to budgetary challenges for local governments that rely heavily on property tax revenues.
Summary
HJR156 proposes an amendment to the Texas Constitution aimed at ensuring fair and equal taxation. The cornerstone of this bill is the requirement that the full cash value of property, defined specifically at the time of purchase, construction, or exchange, be the basis for ad valorem taxation. This measure intends to create a more standardized approach to property taxation in Texas, mitigating fluctuations in market value assessments that can lead to disparities in property taxes across different regions and property types.
Sentiment
The sentiment surrounding HJR156 appears to be mixed. Supporters laud the bill for addressing fairness in taxation and providing a more predictable framework for property owners. They argue that by locking in property values at the time of significant transactions, it protects residents from sudden spikes in taxation due to market fluctuations. Conversely, opponents raise concerns that the bill may exacerbate funding shortages for local services, as it limits the ability of local governments to adjust taxation in line with changing property values.
Contention
Notable points of contention include the concern over local government revenues under the new framework proposed by HJR156. Critics argue that by tying tax assessments to a fixed valuation based on property transactions, municipalities may struggle to adapt their budgets in the face of changing economic conditions. This could lead to decreased funding for essential services, particularly in areas where property values have significantly risen since the 2009 baseline. As such, the debate highlights a fundamental conflict between the push for tax fairness and the need for adequate local funding.
Enabled by
Relating to requiring the full cash value of property, calculated only when property is purchased, constructed, or exchanged, be used for purposes of ad valorem taxation.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of commercial property and rental property for ad valorem taxation.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of commercial property and rental property for ad valorem taxation.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of commercial property and rental property for ad valorem taxation.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value for ad valorem tax purposes and exempt from ad valorem taxation a portion of the market value of rental real property that primarily serves as the residence of the occupants of the property.
Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation property used to control pollution, regardless of whether the property is used to meet or exceed rules or regulations adopted for that purpose.
Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a residence homestead for ad valorem tax purposes is the market value of the property for the first year that the owner qualified the property for a homestead exemption or, if the owner purchased the property, the purchase price of the property.
Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation the portion of the assessed value of a person's property that is attributable to the installation or construction in or on the property of border security infrastructure.