Texas Senate Bill SJR63

Texas 2021 - 87th Regular

Caption

Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation by a school district a portion of the appraised value of an individual's residence homestead.

Impact

If adopted, SJR63 would significantly alter how ad valorem taxes are calculated for residence homesteads, thereby influencing local funding for schools. By permitting exemptions based on the median appraisal values, the bill would enable the legislature to tailor tax relief efforts that directly benefit residents. However, this could also lead to gaps in funding for school districts, which traditionally rely on property taxes for operational costs, potentially requiring adjustments in budget priorities.

Summary

SJR63 proposes a constitutional amendment that allows the Texas legislature to exempt a portion of the appraised value of an individual's residence homestead from ad valorem taxes levied by school districts. Specifically, the bill suggests an exemption amounting to 150 percent of the median appraised value of single-family residences within the state. This legislative measure aims to provide financial relief to homeowners by reducing the burden of property taxes, particularly for those impacted by rising appraisal values.

Contention

The proposal has sparked discussions regarding its implications on school funding. Supporters argue that such exemptions can aid struggling families, making homeownership more affordable amid escalating property values. Conversely, opponents highlight concerns about the long-term viability of school district funding, worrying that reduced tax revenues may adversely affect educational quality. As local entities could see funding fluctuations, the balance between providing tax relief and ensuring adequate school financing remains a contentious point among legislators.