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Bill

Bill

HJR 27

Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of certain commercial real property for ad valorem tax purposes.

89th Legislature, 2nd Called Session (2025) Introduced by Will Metcalf

Proposes constitutional amendment allowing Texas legislature to cap commercial property tax valuations, potentially reducing business tax obligations while cutting local government revenues.

Filed
#propertyinterests--realproperty(i0595) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HJR 27

Legislative bill overview

HJR 27 proposes a constitutional amendment that would allow the Texas legislature to cap the appraised value of certain commercial real property for property tax purposes. This would require voter approval through a statewide referendum and would modify the Texas Constitution to enable lawmakers to implement maximum valuation limits on specific categories of commercial buildings.

Why is this important

Property tax valuations directly affect how much commercial property owners pay in taxes and influence the revenue available to schools, counties, and local taxing districts. Capping commercial property values could reduce tax burdens for some businesses while potentially shifting the tax burden to other property types or reducing funding for public services that depend on property tax revenue.

Potential points of contention

  • Revenue impact: Limiting commercial property valuations could significantly reduce tax revenue for schools and local governments, requiring either service cuts or alternative revenue sources
  • Competitive fairness: Different commercial properties might receive different treatment depending on which properties qualify for the cap, potentially creating unequal tax treatment
  • Vague criteria: The bill references "certain commercial real property" without specifying which properties would qualify, leaving the definition to future legislative action

Compiled from official sources — confirm details with the bill’s official record.

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