Texas House Bill HJR120

Texas 2023 - 88th Regular

• Filed: 2/22/23

Caption

Proposing a constitutional amendment authorizing the legislature to limit the total amount of ad valorem taxes that a school district 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 20 consecutive tax years.

Impact

If enacted, HJR120 would amend Article VIII of the Texas Constitution, specifically adding Section 1-b-2, which delineates how school district taxes can be capped for qualifying residents. Provisions include that taxes on a homestead may not exceed the amount imposed in the 20th tax year, and surviving spouses of individuals meeting this criterion would also benefit from the same tax limitations, improving their financial security. This will significantly impact local education funding by potentially reducing the funds available from property taxes for schools, leading to a shift in how educational finance is structured at the state level.

Summary

HJR120 proposes a constitutional amendment that authorizes the Texas legislature to limit the total amount of ad valorem taxes that a school district can impose on an individual's homestead if the individual has qualified the property as their residence homestead for at least 20 consecutive tax years. This amendment aims to provide financial relief to long-term homeowners by preventing significant tax increases after two decades of residence. The proposed limitations could enhance affordability and stability for these families, as they face the potential burden of rising property taxes due to gentrification or increasing property values.

Sentiment

The overall sentiment surrounding HJR120 appears to be supportive among homeowners, particularly those who have resided in their homes for extended periods. Advocates argue it would provide necessary protections against skyrocketing property taxes that often accompany real estate booms. However, some educators and local officials voiced concerns about the implications of limiting school funding derived from property taxes, fearing it might detract from the resources available for public education, which could compromise educational standards and services offered to students.

Contention

Notable points of contention include concerns about the potential impacts on public school funding and the fairness of tax limitations. Critics argue that while the bill may provide benefits to long-term homeowners, it could create disparities between newer residents or those unable to qualify under the 20-year criteria. Additionally, there are concerns that this amendment could unintentionally place an excessive reliance on state funding, creating greater financial disparities among school districts across Texas, particularly affecting those in lower-income areas who depend heavily on local tax revenue.