Relating to making permanent the limitation on increases in the appraised value of certain real property for ad valorem tax purposes.
Impact
If passed, HB234 will affect how properties are appraised for tax purposes starting in the 2027 tax year. By making the appraisal limitation permanent, the bill aims to stabilize tax assessments and potentially protect property owners from sharp increases in property tax dues. The goal of maintaining this limitation could assist in preserving housing affordability and providing predictability in budgeting for homeowners and real estate investors alike.
Summary
House Bill 234 aims to make permanent the limitation on increases in the appraised value of certain real property for ad valorem tax purposes. Currently, under the provisions set to expire, properties other than single-family residences may not experience an appraised value increase of more than 20% per year, with specific exceptions provided. This bill seeks to amend the relevant sections of the Tax Code to ensure that this limitation remains in effect beyond its current expiration date, which is provisionally set for December 31, 2026.
Contention
The discussion surrounding HB234 encompasses several notable points of contention. Proponents argue that the extension of appraisal limits will offer essential protections to taxpayers amid rising property values and historical trends of increasing property taxes across Texas. Critics, however, may raise concerns about the implications on local government revenues, suggesting that by restricting appraisal increases, local jurisdictions may face challenges in funding essential services that rely on property tax revenues.
Enabling for
Proposing a constitutional amendment to authorize the legislature to make permanent the limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes.
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.