Texas House Bill HJR97

Texas 2019 - 86th Regular

Caption

Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation by a school district a portion of the appraised value of an individual's residence homestead in an amount equal to the lesser of 50 percent of the appraised value of the residence homestead after all other applicable exemptions for which the individual has qualified the homestead are applied or 150 percent of the median appraised value of all single-family residences in the state and authorizing the legislature to exempt from ad valorem taxation by one or more political subdivisions of this state inventory held for sale at retail.

Impact

If enacted, this amendment would significantly impact property tax revenue streams for school districts, as it allows for increased exemptions that could lead to reduced funding for education in the short term. By introducing a cap based on the median appraised value, the measure aims to provide relief to homeowners while potentially complicating the financial dynamics for local educational institutions. Furthermore, the bill includes provisions that authorize exemptions for inventory held for sale at retail, thus allowing local governments more flexibility in managing their tax policies towards businesses.

Summary

HJR97 proposes a constitutional amendment to modify ad valorem taxation policies in Texas, specifically targeting the taxation of residential homesteads and retail inventory. Under this amendment, the legislature would be empowered to exempt a portion of the appraised value of an individual's residence homestead from taxation by school districts. The exemption would be calculated as the lesser of 50% of the appraised value—after all qualifying exemptions—or 150% of the median appraised value of all single-family homes in the state. This aims to alleviate tax burdens on homeowners, particularly those with limited financial means.

Contention

Notably, the discussion surrounding HJR97 has highlighted concerns regarding the implications of increased exemptions for public services, primarily education. Proponents argue that reducing tax burdens on homesteads is imperative for economic fairness, especially for lower-income households. However, opponents contend that such changes could jeopardize the financial stability of school funding, potentially leading to cuts in educational services. The amendment raises a fundamental debate about balancing taxpayer relief with adequately funding public education and ensuring that schools can meet their operational needs.