Texas Senate Bill SJR46

Texas 2015 - 84th Regular

Caption

Proposing a constitutional amendment increasing the amount of the residence homestead exemption from ad valorem taxation for public school purposes, providing for the increase of the exemption amount in subsequent years to reflect inflation in homestead values, 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 a disabled or elderly person to reflect the increased exemption amounts.

Impact

By increasing the homestead exemption, SJR46 is positioned to alleviate the tax burden on both elderly and disabled individuals who own homes, allowing them to retain more of their property’s value. Additionally, this amendment could also impact the funding mechanisms for public schools, as it would reduce the amount of taxable property available to support local education initiatives. Consequently, state lawmakers will need to balance the financial benefits to homeowners with the potential reduction in tax revenue for school funding.

Summary

SJR46 proposes an amendment to the Texas Constitution aimed at increasing the residence homestead exemption from ad valorem taxation specifically for public school purposes. The current exemption of $15,000 would be significantly raised to $35,000, thereby providing considerable tax relief to homeowners. The bill includes provisions for automatically adjusting this exemption in subsequent years based on inflation rates for residential homestead values, which would further enhance the financial benefits to eligible homeowners over time.

Contention

While proponents of SJR46 highlight the importance of providing financial relief to vulnerable populations, including elderly and disabled individuals, there are concerns regarding who would bear the fiscal responsibilities of such an exemption expansion. Critics may argue that the reduction in available tax revenue for public education could create broader implications for educational resources and quality. Proponents may need to address how school districts will manage potential revenue losses and ensure that educational funding remains stable even with increased homeowner exemptions.