Texas House Bill HB3972

Texas 2023 - 88th Regular

• Filed: 3/7/23

Caption

Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem taxation.

Impact

The passage of HB 3972 would directly impact homeowners across Texas by providing clearer guidelines for how their property taxes are assessed. Specifically, it aims to prevent significant fluctuations in property tax valuations by establishing stricter limits on how much values can increase year over year. This legislative move is particularly significant in areas experiencing rapid property value growth, as it can anchor property tax obligations to a more stable growth rate, potentially helping families avoid financial strain due to rising taxes.

Summary

House Bill 3972 seeks to impose a limitation on the increases in the appraised value of residence homesteads for ad valorem taxation in Texas. The bill proposes that an appraisal office can only increase the appraised value of a homestead to an amount that does not exceed the lesser of either the market value determined for the most recent tax year or a calculated threshold based on specific formulas. These formulas take into account a fixed percentage increase and already established values, thereby potentially easing the financial burden on homeowners through predictable tax assessments.

Sentiment

The sentiment surrounding HB 3972 appears to be generally supportive among homeowners and advocacy groups who favor financial stability in property tax assessments. These stakeholders argue that the bill will protect residents from the adverse effects of inflation and skyrocketing property taxes. However, there may also be apprehension from local government entities concerned about the long-term implications on their budgetary revenues based on limited property tax growth.

Contention

One of the notable points of contention regarding HB 3972 stems from the balance between managing property tax burdens and ensuring adequate funding for local services. Critics argue that capping property taxes could impede the ability of local governments to generate necessary revenue for public services such as education and infrastructure. Additionally, the bill's implementation is conditioned upon the approval of a concurrent constitutional amendment, raising additional concerns about its future enactment and stability.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 23. Appraisal Methods And Procedures
  • Section: 23