Texas House Bill HJR20

Texas 2021 - 87th 2nd C.S.

Caption

Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.

Impact

Additionally, the bill proposes to exempt the total appraised value of residential properties purchased by individuals who qualify their property as their residence homestead for the first year, provided the property is appraised for less than $300,000. This exemption aims to support first-time home buyers by alleviating the tax burden during the initial year of homeownership. Furthermore, it limits the total amount of property taxes that can be imposed by political subdivisions on residence homesteads of individuals and their surviving spouses, provided that the homeowners have maintained their homestead for at least 25 consecutive years.

Summary

HJR20 proposes a constitutional amendment aimed at amending property tax laws in Texas specifically concerning residential real property. The bill seeks to enable the legislature to limit the maximum appraised value of residential properties for ad valorem tax purposes to 105 percent of the appraised value from the prior tax year. This change is designed to provide more stable taxation for homeowners and to enhance predictability in property tax liabilities as market values fluctuate.

Contention

Notable points of contention in discussions around HJR20 may revolve around the implications of these tax limitations on funding for local governments and schools, as property taxes often contribute significantly to local budgets. Critics may argue that while the intentions of protecting long-term homeowners and supporting first-time buyers are commendable, the amendments could restrict funding streams crucial for maintaining public services. Therefore, concerns regarding potential revenue losses for municipalities and their ability to meet community needs may arise, highlighting the tension between taxpayer protection and the fiscal health of local governmental entities.