Texas House Bill HJR28

Texas 2025 - 89th 2nd C.S.

• Filed: 8/19/25

Impact

If enacted, HJR28 would significantly alter the landscape of property taxation within Texas, particularly for commercial real estate. By allowing the Legislature to impose limits, it could prevent excessive tax burdens during times of market volatility. Such a move could lead to reduced tax liabilities for property owners and create more predictable financial planning for businesses. However, the specific criteria for which properties qualify for these limitations will need to be carefully structured to avoid potential loopholes that could undermine the intent of the legislation.

Summary

HJR28 proposes a constitutional amendment that would empower the Texas Legislature to set limits on the maximum appraised value of certain commercial real properties for ad valorem tax purposes. The resolution suggests that this limit could be tied to either the last market value assessed by the appraisal entity or up to 120 percent of the appraised value from the previous year. This measure aims to provide a more structured approach to property taxation, particularly designed for commercial entities that may face fluctuating market conditions.

Contention

Discussions around HJR28 may raise concerns regarding its implementation and impact on local revenues. Critics might argue that imposing a limit on appraised values could restrict local governments' ability to collect adequate funding through property taxes, which are vital for public services and infrastructure. Additionally, there could be disputes about the fairness of limiting property valuations, especially in rapidly appreciating markets where some property owners may feel disadvantaged compared to others who benefit from the appraisal cap.