Texas House Bill HJR28

Texas 2021 - 87th 1st C.S.

Caption

Proposing a constitutional amendment to increase the maximum amount of the local option residence homestead exemption from ad valorem taxation by a political subdivision.

Impact

Should HJR28 pass, it would fundamentally alter the landscape of property taxation for homeowners in Texas by enabling local governments to offer a more substantive tax break on the market value of residences. This could provide significant savings for many residents, particularly those on fixed incomes or with limited financial flexibility. The bill empowers local governing bodies with the authority to implement these exceptions, which could lead to varied applications depending on local economic conditions and priorities.

Summary

HJR28 proposes a constitutional amendment to increase the local option residence homestead exemption from ad valorem taxation from 20 percent to a maximum of 100 percent. This amendment is designed to provide substantial tax relief for homeowners by allowing political subdivisions to exempt larger portions of residence homesteads from taxation. The impetus behind this bill centers on making homeownership more affordable and minimizing the tax burden on residents, especially in politically diverse and financially strained communities. The amendment reflects a broader effort by the legislature to support residents amidst rising property taxes across Texas.

Contention

While supporters argue that increasing the homestead exemption will provide necessary financial relief to homeowners, there may be concerns regarding the long-term fiscal implications for local governments, especially regarding their ability to fund essential services. Critics might argue that such a significant shift in property tax policy could lead to decreased revenue for local agencies that rely on these funds for public services like education and infrastructure. This contention may fuel extensive debates in the legislature regarding the balance between tax relief for residents and the financial health of local governments.