Texas House Bill HJR102

Texas 2025 - 89th Regular

• Filed: 12/2/24

Caption

Proposing a constitutional amendment to authorize the legislature to provide for an exemption from ad valorem taxation of the amount of the market value of residential real property that arises from the installation in the property of certain energy efficiency-related improvements.

Impact

If passed, this amendment would directly impact the Texas Constitution, specifically Article VIII, by adding a new section allowing the legislature to define what constitutes 'energy efficiency-related improvements' and set eligibility requirements for the proposed tax exemptions. The measure aims to incentivize homeowners to invest in energy efficiency technologies, which could lead to increased home valuations and stimulate local economies through the installation of new technologies and services.

Summary

HJR102 is a joint resolution proposing a constitutional amendment that would authorize the Texas Legislature to provide exemptions from ad valorem taxation for the market value of residential real property resulting from certain energy efficiency-related improvements. This initiative seeks to promote energy-efficient upgrades in residential properties by enabling homeowners to benefit financially through tax exemptions, thereby encouraging investments in sustainability and reducing overall energy consumption within the state.

Contention

While proponents of HJR102 argue that it will foster energy conservation and provide financial relief to homeowners, there may be concerns regarding the long-term implications for county revenues that rely on property taxes. Critics could question whether such exemptions would disproportionately benefit wealthier homeowners who can afford energy upgrades, thus widening the gap in tax equity across socioeconomic groups. Discussions may arise around how to ensure that such benefits are accessible to all residents, particularly those in lower-income brackets who may not have the means to make energy-efficient improvements.