Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem taxation.
Under SB95, counties can hold elections to enable voters to decide on a percentage limitation that would apply to the appraised value of residences within their jurisdiction. If the proposed limitation is approved, it will remain in effect until amended or repealed through another vote, which cannot occur more frequently than every ten years. This introduces a mechanism for local control and allows communities to tailor property tax laws to their specific needs.
Senate Bill 95 aims to regulate the increases in the appraised value of residences designated as homesteads for ad valorem taxation in Texas. The bill amends existing tax code sections to limit how much the appraised value of a residence homestead can increase each year, setting a maximum increase that aligns with a prescribed percentage of the previous year's value. This statute is significant as it aims to provide financial relief for homeowners struggling with rising property taxes and stabilizes the local tax base.
The sentiment surrounding SB95 appears to be mixed. Proponents see it as a necessary measure to protect homeowners from exorbitant property tax increases and provide more manageable taxation levels. Conversely, opponents express concerns about the potential long-term effects on local government funding and the ability to maintain essential services, arguing that it may lead to reduced revenue for local entities dependent on property taxes.
There are notable points of contention surrounding SB95, particularly regarding its implications for local government authority and the effectiveness of tax limits. Critics argue that such restrictions could inhibit the ability of local governments to respond to changes in the economy and meet the needs of their residents. Additionally, concerns regarding whether limiting appraised values might lead to disparities in how property taxes are assessed and collected could further complicate the implementation of this bill.