Proposing a constitutional amendment to authorize the legislature to provide for a temporary limitation on the appraised value for ad valorem tax purposes of real property located in a political subdivision any part of which is located in an area that at any time during the preceding tax year was declared a disaster area.
If enacted, this amendment would provide significant relief to property owners in disaster-stricken areas by preventing sudden spikes in property taxes that can arise from increased appraisals following severe events. This measure aims to alleviate the financial burden on residents recovering from disasters, thereby aiding in faster recovery and stability within affected communities. It highlights the state's recognition of the need for flexible tax regulations during these challenging times.
HJR90 proposes a constitutional amendment that would allow the Texas Legislature to impose a temporary limitation on the appraised value of real property within political subdivisions that experienced a disaster as declared by the governor or the president in the preceding tax year. Specifically, the legislation seeks to amend Section 1, Article VIII of the Texas Constitution to enable the setting of the maximum appraised value of such properties at either the most recent market value or the appraised value from the previous year, whichever is lower.
During discussions regarding HJR90, lawmakers acknowledged both the potential benefits and criticisms of the proposed changes. Supporters argue that this amendment is a necessary tool for helping communities rebuild, while detractors may raise concerns about the implications for local government revenues, suggesting that limiting appraised values could lead to budgetary challenges for essential services in the aftermath of a disaster. The balance between providing tax relief and maintaining local funding sources appears to be a central point of contention in discussions surrounding this bill.