Texas House Bill HJR31

Texas 2019 - 86th Regular

Caption

Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation real property leased to certain schools organized and operated primarily for the purpose of engaging in educational functions.

Impact

The proposed amendment would alter Section 2(a), Article VIII of the Texas Constitution to allow the legislature the authority to exempt real property leased to specific educational organizations from taxation. This change implies that the leaseholders of such properties, particularly those affiliated with charter schools, would be able to allocate financial resources towards educational programming and infrastructure rather than tax expenses. The implementation of this tax exemption is expected to take effect starting with the tax year beginning January 1, 2020, allowing schools to benefit sooner from this legislative change.

Summary

HJR31 is a joint resolution proposing a constitutional amendment to exempt certain real properties from ad valorem taxation. Specifically, it targets properties leased to schools that are primarily focused on educational functions. The goal of this amendment is to provide financial relief to these educational institutions, particularly charter schools, which may be burdened by property taxes. By reducing the tax liability on leased properties utilized for educational purposes, the resolution aims to foster a more conducive environment for educational growth and accessibility.

Contention

While proponents argue this amendment will support educational institutions and enhance access to education for Texas children, concerns have been raised about the long-term fiscal implications. Opponents may argue that tax exemptions can lead to reduced funding for public services necessary for community support. Additionally, critics could express concern that this preferential treatment may disproportionately benefit certain educational entities over others, potentially straining local economies and public school financing. The debate centers on balancing support for educational growth while ensuring fair taxation principles across the community.