Texas Senate Bill SJR38

Texas 2019 - 86th Regular

Caption

Proposing a constitutional amendment to authorize the legislature to set a lower limit and provide for more than one limit on the maximum appraised value of a residence homestead for ad valorem taxation.

Impact

If enacted, SJR38 would amend the Texas Constitution, specifically Article VIII, to grant the legislature the authority to establish a limit below the current appraised value for tax assessments. This change could lead to a decrease in tax burdens for homeowners as they would have a clearer structure under which property valuations are assessed. Furthermore, by allowing for varying limits based on property value categories, the amendment aims to ensure that taxation is reflective of the current market conditions and homeowner circumstances, potentially alleviating disproportionate financial pressures on lower-income property owners.

Summary

SJR38 is a joint resolution proposing a constitutional amendment to modify how maximum appraised values for residence homesteads are determined for ad valorem tax purposes in Texas. The bill primarily seeks to allow the legislature to set a lower limit and to introduce multiple limits on the maximum appraised value, which would affect property tax calculations for homeowners. This proposed change is significant as it directly targets the financial impact of property taxation on residents, particularly those with lower-value homesteads who could potentially benefit from more favorable tax calculations.

Contention

There are notable points of contention surrounding SJR38. Proponents argue that it will provide essential relief for homeowners facing high property taxes, particularly in rapidly appreciating markets. They contend that by allowing more flexibility in how appraised values are set, the bill can aid in making homeownership more accessible. However, opponents may raise concerns about the potential loss of revenue for local governments that rely heavily on stable property tax incomes to fund public services. Critics could also argue that the broad authority granted to the legislature may lead to inconsistencies in the implementation of tax laws across different regions, thereby creating disparate impact on communities based on their socio-economic status.