Texas House Bill HB957

Texas 2015 - 84th Regular

Caption

Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem taxation.

Impact

The proposed legislation is expected to have significant implications for state laws governing property taxes. By establishing a cap on the year-over-year increase of appraised values, the bill could enhance affordability for homeowners facing rising property taxes as a result of increasing real estate values. It directly addresses the concerns of homeowners who feel burdened by sharp rises in taxes due to booming housing markets.

Summary

House Bill 957 aims to limit the increase in the appraised value of residential homesteads for ad valorem taxation in Texas. The bill proposes to amend the Tax Code by allowing an appraisal office to raise the appraised value of a residence homestead by no more than five percent of its value from the previous year, along with considering the market value of any new improvements made to the property. This measure is intended to provide homeowners with more financial predictability concerning their property tax obligations.

Contention

While the bill has garnered support from various stakeholders who see it as a means to protect homeowners from potentially excessive tax burdens, it is not without controversy. Critics may argue that capping appraised values could undermine local governments' revenue streams, leading to budget shortfalls for essential public services. Additionally, there may be concerns about how this cap interacts with ongoing economic fluctuations and the potential impacts on housing market dynamics.