Texas House Bill HB349

Texas 2017 - 85th 1st C.S.

Caption

Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.

Impact

The passage of HB 349 could significantly affect homeowners by potentially lowering the yearly increase in property taxes for their primary residences. The bill aims to provide tax relief, particularly for those who may feel the burden of rising property taxes in a real estate market characterized by rapidly appreciating home values. This move is poised to make homeownership more financially sustainable for many residents across Texas.

Summary

House Bill 349 addresses the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes. This bill modifies Section 23.23(a) of the Texas Tax Code to restrict how much an appraisal office can increase the appraised value of a homestead in any given tax year. Specifically, it allows increases not to exceed the lesser of either the market value from the most recent appraisal or a calculated cap based on the previous year's appraised value and a defined percentage increase.

Contention

While proponents of HB 349 argue that it will ease financial pressures on homeowners and create a more predictable taxation environment, there are concerns about its long-term implications. Critics may view it as a limitation on local appraisal practices, which could impede local governments' ability to adjust property values according to market conditions. If the bill does not account for broader economic factors, it might unintentionally favor certain homeowners over others, leading to disparities in property tax burdens.