Texas House Bill HJR22

Texas 2025 - 89th 1st C.S.

• Filed: 7/22/25

Caption

Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of certain commercial real property for ad valorem tax purposes.

Impact

If enacted, the proposed amendment would significantly impact property taxation in Texas, particularly for commercial real estate. It would allow the legislature to define eligibility criteria and establish market value thresholds for properties that could benefit from this appraisal limitation. This measure aims to provide more predictable tax obligations for owners of commercial properties and potentially encourage investment by reducing the financial uncertainties tied to fluctuating property values and tax liabilities.

Summary

HJR22, a joint resolution, proposes a constitutional amendment that would empower the Texas legislature to establish limits on the maximum appraised value of certain commercial real properties for ad valorem tax purposes. The amendment aims to provide a legal framework through which the legislature can control the appraisal process for commercial properties, potentially easing the tax burden on property owners by limiting the increases in appraised values. The proposed approach allows for an appraisal limit not exceeding 120% of the previous year's value, subject to conditions outlined by the legislature.

Contention

While HJR22 seeks to provide relief for property owners, it could also spark debate regarding its effects on local government revenues and budgeting processes. Critics may argue that limiting property appraisals could reduce funds available for essential public services, as property taxes are a primary source of local revenue. Furthermore, there may be concerns about the equity of such measures, whether it would disproportionately favor larger commercial entities over small businesses or other property owners. Therefore, the resolution could attract a variety of viewpoints from stakeholders, including business advocates, local governments, and taxation experts.