Proposing a constitutional amendment to authorize the legislature to limit the appraised value of real property for ad valorem tax purposes to the value when the owner acquired the property and to provide for determining that value on the basis of the purchase price of the property, if applicable.
If passed, HJR145 would modify Article VIII, Section 1 of the Texas Constitution, specifically regarding the assessment of property taxes. The amendment would authorize the legislature to create laws that determine the maximum taxable value of properties based on their acquisition price, rather than the higher market value that can occur after a property has been sold. This approach could positively impact homeowners, particularly those who fear rising property taxes due to inflated market values, making it easier for them to plan their finances in relation to property taxes.
House Joint Resolution 145 (HJR145) proposes a constitutional amendment to allow the Texas Legislature to limit the appraised value of real property for ad valorem tax purposes. The resolution stipulates that the appraised value may be set to the value at the time of purchase when a property owner acquired it. This change aims to provide a more predictable and potentially lower ad valorem tax burden for property owners by anchoring property taxes to historic purchase prices rather than fluctuating market values.
Notable points of contention surrounding HJR145 may arise from concerns about its impact on local government revenues. By potentially lowering property tax assessments, municipalities and counties could see a decrease in their tax bases, raising questions about how essential public services will be funded. Critics may argue that while the bill benefits homeowners, it could hinder local governments' abilities to adequately provide services funded by property taxes. Supporters, however, believe that stabilizing property taxes based on purchase price will ultimately benefit residents and make housing more affordable.