Proposing a constitutional amendment to authorize the legislature to set a lower limit on the maximum appraised value of a residence homestead for ad valorem taxation.
This bill's passage could have significant implications for property owners in Texas by potentially lowering their property tax burdens. By capping the appraisal increases under certain conditions, homeowners may find relief from rising taxes that often exceed their ability to pay, especially in rapidly appreciating areas. The change aims to enhance the affordability of housing by safeguarding homeowners against excessive tax assessments, ultimately affecting local and state revenue structures dependent on property taxes.
HJR71 is a joint resolution proposing a constitutional amendment that aims to authorize the Texas Legislature to establish a lower limit on the maximum appraised value of a residence homestead for ad valorem tax purposes. The proposed amendment modifies Section 1(i) of Article VIII of the Texas Constitution, allowing the legislature to limit this maximum appraised value to either the most recent market value or up to 105 percent of the appraised value from the preceding tax year, offering flexibility to adjust for changing real estate markets and tax equity concerns.
Notably, there are points of contention surrounding HJR71. Supporters argue that the measure is necessary to protect residents from unchecked tax increases, thereby enhancing housing affordability and stability within communities. However, detractors contend that implementing such limits could reduce revenue for local governments, which rely on property taxes for essential services such as education, infrastructure, and public safety. The debate revolves around balancing taxpayer relief with the economic realities of municipal funding and service provision.