Relating to a limitation on increases in the appraised value of real property for ad valorem tax purposes.
Impact
The passage of HB 4082 will directly affect the financial obligations of property owners across Texas. By establishing a more predictable framework for property valuation, the bill seeks to support affordability in local housing markets. The changes proposed in the bill also aim to address concerns over the escalating costs of owning real estate, making it easier for families and individuals to budget for their taxes without fear of sudden increases based on speculative market fluctuations. However, for local governments, this may pose challenges in maintaining revenue from property taxes, potentially affecting funding for essential services like education and public infrastructure.
Summary
House Bill 4082 proposes a significant amendment to the Texas Tax Code concerning the appraisal value of real property for ad valorem tax purposes. The bill aims to limit the increases in the appraised value of properties, specifically focusing on real estate ownership and the associated tax implications. Notably, this legislation provides guidelines for how the market value of a property is determined upon acquisition, ensuring that the purchase price reflects the appraised market value for at least the first tax year of ownership. This limitation is designed to protect new homeowners from dramatic increases in property taxes that exceed fair market value assessments.
Contention
While the bill has garnered support for its potential benefits for property owners, it has also faced criticism. Opponents may argue that limiting appraisal increases could significantly constrain local governments' ability to generate revenue through property taxes, thus hampering local development projects and public programs. Furthermore, the prerequisite that the constitutional amendment allowing such tax changes be approved by voters introduces an additional layer of complexity and contention, as it ties the implementation of this bill to broader public approval and potential political debates over taxation and property rights.
Enabling for
Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a parcel of real property for ad valorem tax purposes for the first tax year in which the owner owns the property on January 1 is the market value of the property and that, if the owner purchased the property, the purchase price of the property is considered to be the market value of the property for that tax year and to limit increases in the appraised value of the property for subsequent tax years based on the inflation rate.
Relating to a limitation on increases in the appraised value of commercial real property and single-family rental property for ad valorem tax purposes.
Relating to a limitation on increases in the appraised value of commercial real property and single-family rental property for ad valorem tax purposes.
Relating to a limitation on increases in the appraised value of commercial real property and single-family rental property for ad valorem tax purposes.
Relating to a limitation on the maximum appraised value of real property for ad valorem tax purposes of 105 percent of the appraised value of the property for the preceding tax year.