Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem taxation.
Impact
If enacted, HB157 will directly affect the tax code by modifying Section 23.23 of the Texas Tax Code. As a result, homeowners will benefit from decreased volatility in their property tax assessments. The bill seeks to protect homeowners from significant spikes in their tax liabilities that can occur when property values rise sharply. However, the bill’s implementation is contingent upon the approval of a corresponding constitutional amendment, which is set to be voted on by the public in 2025.
Summary
House Bill 157 aims to limit the increases in the appraised value of a residence homestead for ad valorem taxation in Texas. This limitation is set to apply during the assessment of property values, effectively placing a ceiling on how much the appraised value can increase year over year. Specifically, the bill allows an appraisal office to increase the appraised value by no more than five percent from the previous year's value or the market value of any new improvements made to the property. The intent of the bill is to provide more financial predictability for homeowners regarding their property taxes.
Contention
There are notable points of contention surrounding HB157. Proponents argue that the bill is a crucial step toward providing taxpayer relief and ensuring that the financial burden of rising property taxes does not disproportionately affect low- and middle-income families. Opponents may raise concerns about potential impacts on local government funding, as decreased appraised values could limit resources available for public services. Moreover, the bill's success hinges on voter approval of the proposed constitutional amendment, which adds a layer of complexity and uncertainty to its future.
Enabling for
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.