Proposing a constitutional amendment increasing the amount of the residence homestead exemption from ad valorem taxation for public school purposes and providing for a reduction of the limitation on the total amount of ad valorem taxes that may be imposed for those purposes on the homestead of an elderly or disabled person to reflect the increased exemption amount.
If enacted, HJR74 will directly affect state tax laws by modifying the relevant provisions in the Texas Constitution. The resolution mandates that the legislature provide formulas to help school districts account for any revenue losses incurred as a result of implementing this amendment. Furthermore, protections are proposed for individuals aged 65 or older, ensuring their ad valorem tax obligations do not rise as long as they or their surviving spouse continue to occupy the homestead.
HJR74 is a joint resolution proposing a constitutional amendment aimed at increasing the amount of the residence homestead exemption from ad valorem taxation specifically for public school purposes. The amendment seeks to raise the exemption from $15,000 to $25,000 and adjust the tax limitations for elderly and disabled individuals to correspond with this increased exemption amount. This change is intended to alleviate the tax burden on those qualifying individuals, enabling them to retain more of their property’s value as a tax exemption.
While HJR74 has notable support from various advocacy groups looking to assist the elderly and disabled demographic, there may be points of contention surrounding the potential financial impacts on school districts and the state budget. Critics may argue that increasing homestead exemptions can lead to diminished funding for public education, as school districts rely on property taxes for their operational budgets. This may spark debates over the balance between providing tax relief to vulnerable populations and ensuring adequate funding for educational services.