Texas Senate Bill SJR19

Texas 2017 - 85th Regular

• Filed: 11/14/16

Caption

Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of a residence homestead for ad valorem tax purposes to 105 percent or less of the appraised value of the property for the preceding tax year and to permit the voters of a county to establish a higher limitation not to exceed 110 percent on the maximum appraised value of a residence homestead in the county.

Impact

The introduction of SJR19 could lead to significant changes in how property taxes are assessed at the local level. By capping the appraisal increases, this amendment aims to stabilize homeownership costs during periods of rising property values. This is particularly relevant as homeowners in many areas of Texas have faced escalating tax burdens that correspond with increased home values. If approved, it would empower local voters to further tailor tax limits according to their community's specific needs, fostering greater local control over taxation policies.

Summary

SJR19 proposes an amendment to the Texas Constitution that allows the legislature to limit the maximum appraised value of residential homesteads for ad valorem tax purposes. Specifically, it sets a cap at 105 percent of the property’s appraised value from the previous tax year. Additionally, the amendment gives counties the authority to hold elections permitting voters to establish a higher limitation of up to 110 percent. This structure is designed to offer some relief to homeowners by mitigating rapid increases in property taxes based on appraisals.

Contention

Notable points of contention surrounding SJR19 center on the balance between state authority and local governance. Critics may argue that while the bill provides tax relief to homeowners, it could limit the financial flexibility of local governments reliant on property taxes for funding essential services. Supporters counter that excessive appraisal increases often place an unfair burden on residents, especially those on fixed incomes, such as the elderly. Furthermore, the amendment's stipulation for voters to determine the appropriate cap may lead to political division and varying levels of tax relief across counties.