Texas House Bill HJR75

Texas 2017 - 85th Regular

Caption

Proposing a constitutional amendment to appropriate money from the economic stabilization fund to the foundation school fund and use the money to finance a temporary increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and a temporary reduction in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect the increased exemption amount.

Impact

If passed, HJR75 is expected to have significant implications for state law regarding taxation and funding for education. It will enhance the financial capacity of the foundation school fund by appropriating $3.05 billion from the economic stabilization fund for the purpose of financing the proposed exemptions. This allocation is a strategic move to sustain public school funding while temporarily adjusting tax liabilities for eligible homeowners. As a result, elderly and disabled citizens would feel immediate financial relief, which supports the broader strategy of maintaining equitable education finance systems.

Summary

HJR75 proposes a constitutional amendment aimed at financially assisting education funding in Texas through the economic stabilization fund. The bill seeks to temporarily increase the property tax exemption on residence homesteads, effectively reducing the ad valorem taxes that school districts can impose. Specifically, it would increase the exemption amount for residence homesteads and reduce the limitation on taxes levied on the homes of the elderly and disabled. This measure is positioned as a means to alleviate the tax burden on these vulnerable populations while ensuring that school funding remains adequate during the transitional period.

Contention

Despite the apparent benefits, HJR75 may face opposition on grounds of fiscal sustainability and potential long-term impacts on education funding. Critics might argue that relying on the economic stabilization fund could risk future funding for essential services if not managed prudently. Additionally, concerns may be raised regarding the urgency of establishing a temporary measure that could inadvertently lead to reduced future revenues from property taxes, affecting local school district budgets. Given Texas's growth and the fluctuating economy, careful consideration and debate about the priorities surrounding these tax relief measures will be essential.