Texas Senate Bill SJR58

Texas 2019 - 86th Regular

Caption

Proposing a constitutional amendment to authorize the legislature to permit the governing body of a political subdivision in a county in which home prices are appreciating rapidly to adopt a limitation on increases in the appraised value for purposes of ad valorem taxation by the political subdivision of residence homesteads in certain low-income areas.

Impact

Should SJR58 be enacted, it would introduce a significant change to the Texas Constitution under Article VIII. It would permit local governing bodies to establish a cap on the appraised value of a residence homestead based on either the most recent market value determined by appraisal entities or a calculated increase from the previous year. This change intends to provide limited financial relief specifically targeting homeowners in low-income areas within rapidly appreciating markets, impacting local property tax collections and government budgeting processes.

Summary

SJR58 proposes a constitutional amendment that would empower the Texas legislature to authorize local governments in rapidly appreciating home price counties to limit the increases in appraised values for ad valorem taxation on residence homesteads located in designated low-income areas. This adjustment aims to alleviate the financial burden on low-income homeowners by controlling property taxes, which can often spiral out of control due to rising real estate prices. The intention is to maintain housing affordability for residents in these communities while ensuring they can continue to own their homes without being priced out.

Contention

The proposal is likely to face discussions around the implications of limiting appraised values on local governance and revenue. Proponents argue that it will provide necessary protections for vulnerable populations who might otherwise be forced to move due to increased property taxes. However, critics might voice concerns regarding the long-term sustainability of local government funding sources, as the limitation on appraised value could hinder the ability to collect necessary revenues to support public services. Additionally, there may be debates about defining 'low-income areas' and ensuring that the measure fairly benefits those it intends to help.