Proposing a constitutional amendment to authorize the legislature to establish a lower limit on the maximum appraised value of residence homesteads for ad valorem tax purposes and to establish a limit on the value of single-family residences other than residence homesteads for those purposes.
If passed, HJR22 would amend the Texas Constitution, impacting the way property taxes are assessed in the state. By limiting the maximum appraised values, the resolution could result in significant tax savings for homeowners, particularly during periods of rapid property value inflation. This measure is designed to prevent substantial increases in property tax bills that can occur when market values rise sharply. The amendment would take effect for homeowners beginning the tax year following its enactment, ensuring that the financial benefits are felt relatively quickly by those qualifying under the proposed limits.
HJR22 is a joint resolution proposing a constitutional amendment allowing the Texas legislature to set a lower limit on the maximum appraised value of residence homesteads for ad valorem tax purposes. The bill aims to establish restrictions on the appraisal values of both residence homesteads and single-family residences, thereby potentially providing tax relief to homeowners by limiting the assessed property value for taxation to a defined percentage of the prior year's value. Specifically, the proposal suggests capping the appraised value of residence homesteads at no more than 105% of the previous year’s appraised amount, while setting a similar limit for single-family residences at 110%.
Notable points of contention surrounding HJR22 could revolve around the potential implications for local government funding, as property taxes are a key revenue source for municipalities. Opponents may argue that capping appraised values could limit the tax base available to local governments, thereby constraining their ability to fund essential services such as education, public safety, and infrastructure. Additionally, questions may arise about fairness regarding how different types of properties are treated under the proposed amendment, particularly for investment properties versus primary residences.