Texas House Bill HJR136

Texas 2019 - 86th Regular

Caption

Proposing a constitutional amendment to authorize the legislature to limit increases in the appraised value of commercial real property for ad valorem tax purposes.

Impact

If enacted, HJR136 would affect the Texas Constitution by enabling legislative regulations regarding the appraised values of commercial properties for tax purposes. This amendment could lead to significant changes in financial planning and operational costs for businesses relying on commercial properties. For local governments that derive a portion of their revenue from property taxes, this amendment could present challenges in forecasting future revenue growth, potentially leading to budgeting constraints if commercial property taxes decrease or grow at a slower rate than previously expected.

Summary

HJR136 is a proposed constitutional amendment that seeks to grant the Texas Legislature the authority to limit the increases in the appraised value of commercial real properties for ad valorem tax purposes. This amendment aims to provide a mechanism whereby commercial property owners may see a cap on the taxable value of their properties, specifically limiting increases to 10 percent or a greater percentage based on the previous year's appraised value. This legislative proposal is significant in the context of property taxation as it introduces a potential safety net for property owners against sudden spikes in appraisal values that could lead to increased tax burdens.

Contention

The proposal is not without controversy. Proponents of HJR136 argue that capping appraised values will aid small and medium-sized businesses by preventing steep tax increases that can occur with unpredictable property market valuations. However, opponents may view this amendment as a limitation on local governments' ability to generate necessary revenue from property taxes, which could hinder their capacity to fund critical services and infrastructure projects. Ultimately, the passage of HJR136 would place economic considerations at the forefront of legislative priorities regarding property tax assessments.