Texas House Bill HJR27

Texas 2025 - 89th 2nd C.S.

• Filed: 8/19/25

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 approved, this amendment would modify Section 1, Article VIII of the Texas Constitution to grant the legislature the power to define eligibility criteria for the limitation set on the appraised value of commercial real property. This change is significant as it could lead to a new statewide standard for property taxation, impacting local governance and property owners' tax liabilities. The specific parameters for what constitutes 'commercial real property' would also be essential, potentially changing how properties such as retail businesses and office spaces are taxed.

Summary

HJR27 is a joint resolution proposing a constitutional amendment aimed at allowing the Texas legislature to impose limits on the maximum appraised value of certain commercial real properties for ad valorem tax purposes. The resolution specifies that a law enacted under this amendment must ensure that the maximum appraised value for tax purposes can be set at either the most recent market value or up to 110% of the appraised value from the previous year. This legislative change is targeted at properties that meet the criteria established by the legislature, thereby potentially providing a pathway for tax relief on commercial properties.

Contention

The proposed amendment has sparked debate over the balance between state control and local taxation authority. Proponents argue that limiting the appraisal value could foster economic growth by reducing tax burdens on businesses, particularly in challenging economic times. However, critics may contend that such measures could diminish local governments' ability to address their unique tax needs or fund community services adequately, leading to a potential loss of revenue needed for local projects. The bill's stipulation to set a maximum market value could also raise questions about fairness among different sectors of the commercial property market.