Texas Legislature introduces SB320 to limit increases in homestead appraised value
November 12, 2024 | Introduced Bills , Senate , 2024 Bills , Texas Legislation Bills, Texas
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The key provision of SB 320 amends Section 23.23(a) of the Texas Tax Code, allowing appraisal offices to increase the appraised value of a residence homestead by no more than five percent of the previous year's value, plus the market value of any new improvements. This change is a reduction from the current limit of ten percent, reflecting a legislative effort to provide more substantial relief to homeowners facing rising property taxes.
The bill is contingent upon the approval of a constitutional amendment proposed by the 89th Legislature in 2025, which would grant the legislature the authority to set a lower limit on appraised values. If voters do not approve this amendment, SB 320 will not take effect, highlighting the bill's reliance on public support for its implementation.
Debate surrounding the bill has already begun, with proponents arguing that it will help stabilize housing costs and protect homeowners from sudden tax increases. Critics, however, express concerns that such limitations could reduce funding for essential public services, as property taxes are a significant revenue source for local governments. The potential economic implications are significant, as Texas continues to experience rapid population growth and housing demand, which could exacerbate the challenges of affordability and taxation.
As the legislative session progresses, the outcome of SB 320 will be closely watched, particularly in the context of Texas's ongoing housing crisis. If passed, the bill could set a precedent for how property taxes are managed in the state, influencing both homeowners and local governments alike. The anticipated vote on the constitutional amendment in 2025 will be a critical moment for the future of property taxation in Texas.
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