Texas House Bill HJR138

Texas 2013 - 83rd Regular

Caption

Proposing a constitutional amendment authorizing the governing body of a political subdivision to adopt a local option residence homestead exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the market value of an individual's residence homestead.

Impact

If passed, this bill would amend Section 1-b(e) of Article VIII of the Texas Constitution. Notably, the amendment articulates that the local option exemption could not be less than $5,000 and that the governing bodies have the discretion to levy continued taxes for previously pledged debts against the exempted homestead values. This change is designed to give political subdivisions more authority in managing local tax policies while ensuring that they can address their financial obligations.

Summary

HJR138 proposes a constitutional amendment that would allow the governing body of a political subdivision, such as a city or a school district, to adopt a local option residence homestead exemption from ad valorem taxation. This exemption would be applicable to a specified dollar amount of the market value of an individual's residence homestead. The amendment seeks to provide local governments with the flexibility to implement tax exemptions intended to alleviate the financial burden on homeowners regarding property taxes.

Contention

Discussion around HJR138 highlighted some points of contention, particularly the implications for local revenues. Proponents argue that allowing local control over property tax exemptions can lead to more tailored and effective fiscal policies that suit the needs of individual communities. Conversely, critics express concern that it might lead to unequal tax burdens among residents, as various subdivisions could adopt differing exemption levels, potentially exacerbating disparities in how property taxes are levied across different areas.