Texas House Bill HB3317

Texas 2021 - 87th Regular

Caption

Relating to a limitation on increases in the appraised value of real property for ad valorem tax purposes.

Impact

The implications of HB3317 on state tax law are significant, as it seeks to amend existing regulations relating to property appraisal under the Tax Code. By establishing a cap on the growth of appraised values, the bill strives to create a fairer taxation environment for homeowners, particularly in rapidly developing areas where property values have historically surged. This is especially relevant given current economic conditions, and the legislation could effectively shield residents from sudden spikes in property taxes.

Summary

House Bill 3317 aims to limit the increases in appraised value of real property for ad valorem tax purposes, specifically targeting residential homesteads. The amendments specified in the bill dictate that property appraised value increases cannot exceed a maximum cap which is a combination of the previous year's appraised value plus a stipulated percentage increase and any new improvements made to the property. This is intended to provide more stability and predictability for property tax assessments, potentially reducing the fiscal burden on homeowners.

Contention

Notable points of contention surrounding the bill include concerns from various stakeholders about the potential revenue implications for local governments and the education system, which heavily rely on property taxes. Opponents argue that capping appraised values too tightly could hamper necessary funding for public services, including schools. Furthermore, there may be arguments on whether the limitations could lead to inequities between newer property owners and those who have held their properties for longer, impacting community dynamics and housing market activity.