Texas House Bill HJR42

Texas 2023 - 88th Regular

• Filed: 11/14/22

Caption

Proposing a constitutional amendment to authorize the legislature to exclude from the market value of real property for ad valorem tax purposes the value of any improvement, or any feature incorporated in an improvement, made to the property if the primary purpose of the improvement or feature is compliance with the requirements of standards that address accessible design of buildings or other facilities.

Impact

If passed, the amendment would significantly impact property tax assessments across the state, particularly benefiting property owners who undertake modifications to enhance accessibility in compliance with federal standards. This could encourage more widespread adoption of accessibility measures, fostering an inclusive environment for individuals with disabilities. Additionally, it may lead to increased investments in real property as owners may feel less constrained by potential tax repercussions of their improvements.

Summary

HJR42 proposes a constitutional amendment enabling the Texas legislature to exclude the value of certain property improvements from market value calculations for ad valorem tax purposes. Specifically, this amendment targets improvements made to comply with the 2010 Americans with Disabilities Act Standards for Accessible Design or any successor standards. The goal is to incentivize property owners to make accessibility improvements without incurring additional tax burdens related to those enhancements.

Sentiment

The sentiment surrounding HJR42 appears to be generally positive among supporters who view the bill as a progressive step towards enhancing accessibility and inclusivity in the built environment. Advocates for the disabled community and certain business owners express support for the bill, seeing it as a necessary recognition of the barriers that people with disabilities may face. However, there are concerns from some tax groups about the potential implications for state revenue and whether this amendment could set a precedent for further exclusions in property taxation.

Contention

Notable points of contention include discussions on how the proposed amendment might affect local governments' funding and resources, as property taxes are a significant revenue source for municipalities. Critics worry that excluding certain property values from taxation could exacerbate fiscal challenges faced by local entities. Thus, while the desire to promote accessibility is widely accepted, the broader ramifications on tax revenues and local governance remain contentious topics in the legislative discourse surrounding HJR42.