Texas House Bill HB162

Texas 2021 - 87th 2nd C.S.

Caption

Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.

Impact

The implications of HB162 are expected to significantly impact state tax laws regarding property valuations. By capping the increases in appraised values, particularly for owner-occupied residences, the bill could provide financial relief to homeowners who may be facing rising property taxes. The measure is aligned with similar tax relief initiatives aimed at ensuring affordability for residents, particularly in rapidly appreciating real estate markets. It could help to stabilize the financial burden on families and promote homeownership stability across the state.

Summary

House Bill 162 seeks to amend the Texas Tax Code by introducing limitations on the appraised value increases for both residence homesteads and single-family residences that do not qualify as homesteads. Specifically, the bill proposes that the appraisal district may not increase the appraised value of these properties beyond a specified percentage of the previous year's appraisal value. For residence homesteads, the limit is set at a maximum of 10% increase. This change aims to protect homeowners from significant tax increases while maintaining fair assessments of property values.

Contention

There are notable points of contention surrounding HB162, primarily revolving around the balance of tax relief and the potential for reduced funding for local governments and schools which rely on property taxes. Proponents argue that limiting appraisal increases is essential for housing affordability and protecting consumers in a volatile market. Conversely, opponents express concerns over how these limitations may impact public funding for essential services funded by property taxes. Moreover, the implementation of this bill is contingent on the approval of a proposed constitutional amendment, adding another layer of complexity to the discourse surrounding this legislation.