Texas House Bill HJR44

Texas 2023 - 88th Regular

• Filed: 11/14/22

Caption

Proposing a constitutional amendment to appropriate money from the general revenue fund to the foundation school fund and use the money to finance a temporary increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and a temporary reduction in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect the increased exemption amount.

Impact

Upon enactment, HJR44 will affect the funding of public education through a direct appropriation of $20 billion from the general revenue fund to the foundation school fund. This shift not only temporarily raises the exemption limit to $360,000 for certain homeowners but also limits the total amount of taxes imposed on eligible residence homesteads. The adjustments provide targeted financial support while intending to alleviate the burden of property taxes amid rising housing costs, especially for senior citizens and persons with disabilities.

Summary

HJR44 proposes a constitutional amendment aimed at temporarily amending the Texas Constitution regarding tax exemptions for residence homesteads. Specifically, it seeks to increase the exemption amount from ad valorem taxation for general school purposes and reduce the tax limitations for the homesteads of elderly or disabled individuals. This measure is designed to provide immediate financial relief to homeowners, particularly those in vulnerable demographics, by temporarily altering existing tax structures for the 2024 tax year.

Sentiment

The sentiment surrounding HJR44 has been generally supportive, with advocates arguing that the temporary tax relief is essential during economic fluctuations and increasing property values. Supporters, including local lawmakers and community advocates, perceive this amendment as a necessary step to safeguard homeowners from financial distress. However, there are voices of concern from those who worry that funding reductions to local school districts, resulting from these tax exemptions, could negatively impact educational resources and quality.

Contention

Notable points of contention include discussions about the long-term implications of these temporary exemptions. Critics fear that while HJR44 aims to provide immediate tax relief, it may inadvertently create a gap in funding for vital educational services if local districts cannot compensate for lost revenue. Furthermore, questions about the sustainability of funding mechanisms and whether such amendments undermine local tax bases highlight the ongoing debate about balancing immediate needs with long-term educational goals.