Texas House Bill HJR118

Texas 2021 - 87th Regular

Caption

Proposing a constitutional amendment authorizing the legislature to provide for the appraisal of real property for ad valorem tax purposes based on its purchase price.

Impact

The proposed amendment could lead to a more equitable tax structure, aligning the appraised property values more closely with what buyers actually paid. The intent behind HJR118 is to address concerns over rapidly increasing property values that have outpaced many homeowners' ability to pay increased taxes. Lawmakers anticipate that this may also provide some relief to new homeowners, making property ownership more accessible and predictable, thereby fostering economic growth within communities.

Summary

HJR118 is a joint resolution proposing a significant change to the Texas Constitution regarding the appraisal of real property for ad valorem tax purposes. If passed, this resolution would authorize the legislature to limit the appraised value of properties based on their purchase price for tax calculations. This change aims to provide property owners with a more predictable tax system, particularly advantageous for new buyers who may face fluctuating market values that complicate their tax obligations.

Contention

There may be contentious discussions surrounding HJR118, primarily centered on its potential implications for local government revenues. Opponents of the bill may argue that such limits on property appraisal could hinder local governments' ability to fund essential services, which rely heavily on property tax revenues. Furthermore, there could be debates about how 'bona fide purchaser for value' is defined and implemented, ensuring that the intended beneficiaries of this legislation are appropriately identified without undue loopholes.

Voting_history

Voting on HJR118 is still pending as there are currently no recorded votes associated with this resolution. The proposed timeline for the amendment includes a submission to voters, posing an opportunity for public discourse on the merits and drawbacks of the adjustments to property tax appraisal methodologies.