Proposing a constitutional amendment to authorize the legislature to set a lower limit on the maximum appraised value of a residence homestead for ad valorem taxation.
The proposed amendment could significantly affect property tax assessments across Texas, especially for homeowners. If the legislature chooses to enact this limitation, it would provide a form of financial relief for homeowners, especially in times when the real estate market sees sharp increases in property values that impact tax bills. This could lead to lower tax liabilities for those qualifying properties and may make home ownership more affordable for many citizens, particularly in rapidly developing regions. However, the implications for local government funding, which often relies on property taxes, could also be considerable.
HJR50 is a joint resolution proposing a constitutional amendment which would empower the Texas Legislature to set a lower limit on the maximum appraised value of residential homesteads for ad valorem taxation. The amendment is aimed specifically at allowing the legislature to establish this limit at no more than 105 percent of the appraised value of the residence from the previous tax year or the current market value, whichever is lower. The proposal would apply to residences that qualify for an exemption under Texas Constitution Section 1-b.
During discussions surrounding HJR50, key points of contention arose regarding the balance between providing tax relief to homeowners and the potential impacts on local government budgets. Supporters of the bill argue that limiting the appraised value for taxation purposes would aid those financially burdened by rising property taxes. On the other hand, opponents express concern that such a measure could undermine local government revenue streams, leading to budget shortfalls that may affect community services. Furthermore, there are worries about whether the 105 percent cap is sufficient or if it restricts necessary funding for schools, public safety, and infrastructure.
The resolution is scheduled for voter consideration at an election to be held on November 4, 2025. The ballot will indicate whether voters are in favor of or against the proposed constitutional amendment. The outcome of this vote will ultimately decide if the legislature gains the authority to implement the proposed tax limits, and it reflects broader voter sentiment on property tax management within the state.