Texas House Bill HJR176

Texas 2023 - 88th Regular

• Filed: 3/9/23

Caption

Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value for ad valorem tax purposes in a tax year of land designated for agricultural use or open-space land devoted to farm, ranch, or wildlife management purposes to a specified percentage of the appraised value of the land for the preceding tax year.

Impact

If enacted, HJR176 would significantly modify existing provisions related to agricultural land taxation within the Texas Constitution. The new framework would provide a level of assurance to landowners by capping how much their land's appraised value can increase year-on-year, reflecting a growing trend to support agricultural sustainability. The proposed change could impact the financial planning of farmers and ranchers, as they may experience more stable tax liabilities and better manage operational costs.

Summary

HJR176 proposes a constitutional amendment aimed at stabilizing property taxes for land designated for agricultural use or as open-space land for farm, ranch, or wildlife management. The bill would allow the legislature to limit the maximum appraised value for ad valorem tax purposes in a tax year to a specified percentage, with a proposed starting point of 110 percent of the appraised value from the previous year. The intent is to create a more predictable tax environment for landowners involved in agricultural and open-space activities, potentially offering relief from fluctuating property taxes as market values change.

Sentiment

Sentiment surrounding HJR176 appears to include support from agricultural stakeholders who view this amendment as a critical measure to protect their economic interests against the unpredictability of the current real estate market. Advocates believe it will promote the preservation and continued use of agricultural land, while opponents may worry about the long-term implications of tax revenue generation for local governments if such valuation caps are implemented.

Contention

Key points of contention may arise regarding the potential consequences of limiting appraised valuations on state and local revenues, particularly in areas where agricultural land is prevalent. The bill's critics may argue that reducing the tax obligations of agricultural entities could lead to budget shortfalls for public services that rely on property tax revenue. Additionally, the amendment's implementation could spark debates on who qualifies as land designated for agricultural use, as well as the broader implications for land conservation and development in urban areas.