Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem taxation.
If enacted, HB 376 will provide protection for homeowners by limiting the annual increase in their property tax assessments, potentially leading to lower property tax bills for many. This legislative move is seen as a measure to alleviate the financial burden on homeowners facing rising property costs, especially in areas experiencing rapid growth. The bill's implementation is conditional on a prior constitutional amendment, which must be approved by voters, thus linking its success to public support.
House Bill 376 aims to limit the increases in the appraised value of residence homesteads for ad valorem taxation purposes. The bill amends Section 23.23(a) of the Texas Tax Code to establish new caps on how much the appraised value of a residence homestead can increase. It specifies that, regardless of the appraisal office's determination of market value, the appraised value can only rise by up to the lesser of five percent of the previous year's appraised value or the market value of the property as determined in the most recent assessment.
There may be notable points of contention surrounding HB 376, particularly regarding its impact on local government revenue streams. While proponents argue that it will offer necessary relief for homeowners, critics may contend that limiting appraised value increases could inhibit funding for essential public services, as property taxes are a critical source of revenue for municipalities. The extent to which this bill might affect local financing and the balance of property taxes is likely to be a focal point in discussions around the bill's merits and potential downsides.