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Bill

HJR 32

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 (2025) Introduced by Will Metcalf

Proposes constitutional amendment allowing Texas Legislature to cap appraised values of certain commercial real property for tax purposes, potentially reducing business taxes but shifting revenue burden elsewhere.

Referred to s/c on Property Tax Appraisals by Speaker
#propertyinterests--realproperty(i0595) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HJR 32

Legislative bill overview

HJR 32 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 represent a significant change to how commercial properties are taxed in Texas.

Why is this important

Property tax appraisals directly affect what businesses and property owners pay in taxes. Capping appraised values could reduce tax burdens for certain commercial property owners but would shift the tax burden elsewhere or reduce funding for schools, cities, and other services that rely on property tax revenue. This is a foundational question about how Texas funds public services.

Potential points of contention

  • Revenue impact: Capping commercial property values would reduce tax revenue for schools, counties, cities, and special districts unless offset by raising rates or cutting services
  • Market distortion: Different tax treatment for similar properties based on appraisal caps could create unfair competitive advantages and complicate real estate markets
  • Scope ambiguity: The bill's reference to "certain commercial real property" leaves undefined which properties would qualify, creating uncertainty about actual fiscal impact and fairness
  • Precedent concerns: This could encourage similar caps for residential property, eroding the property tax base further

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

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