Texas House Bill HJR95

Texas 2023 - 88th Regular

• Filed: 1/26/23

Caption

Proposing a constitutional amendment to authorize the legislature to set a lower limit on the maximum appraised value of a residence homestead for ad valorem taxation.

Impact

The proposed amendment is expected to have significant implications for ad valorem tax policies in Texas. If passed, it would empower the Legislature to mitigate increases in property taxes by controlling how much a residence can be appraised for tax purposes. The amendment could provide a buffer for homeowners against rapid market fluctuations, thereby stabilizing their tax liabilities. Given the ongoing discussions around housing affordability in Texas, this proposal reflects a legislative response to concerns about rising housing costs and the financial burden of property taxes on families.

Summary

HJR95 proposes a constitutional amendment aimed at allowing the Texas Legislature to set a lower limit on the maximum appraised value of a residence homestead for ad valorem taxation. This change would enable the Legislature, through general law, to limit the maximum appraised value to either the most recent market value or a specified percentage of the appraised value from the previous tax year, potentially providing financial relief to homeowners facing rising property taxes.

Sentiment

Reactions to HJR95 appear to be divided among stakeholders. Proponents of the amendment emphasize its potential to alleviate financial stress on homeowners and ensure that property taxes remain manageable, particularly for low- and middle-income families. However, critics argue that such taxation reforms could undermine local funding for essential services like education and public safety, which rely heavily on property tax revenues. Overall, the sentiments around HJR95 highlight a complicated balancing act between reducing individual tax burdens and preserving local government funding sources.

Contention

Notable points of contention regarding HJR95 center on the concern that limiting property tax appraisals might lead to inadequate funding for critical public services. As property taxes are a primary revenue source for local governments, any restrictions could result in budget shortfalls, impacting schools and infrastructure. Additionally, some lawmakers express worries about who would bear the financial impact if the bill is enacted. The debate reflects broader tensions around taxation, local control, and the economic priorities of the state as a whole.