WeVote
Log In

Bill

Bill

HJR 26

Proposing a constitutional amendment to authorize the legislature to make permanent the limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes.

89th Legislature (2025) Introduced by Will Metcalf

Texas constitutional amendment would authorize permanent caps on appraised values of commercial property for property tax purposes, potentially lowering business taxes while reducing local government revenue.

Referred to s/c on Property Tax Appraisals by Speaker
#propertyinterests--homestead(i0616) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
0
WeVote Research Nonpartisan
Bill Summary · HJR 26

Legislative bill overview

HJR 26 proposes a constitutional amendment that would allow the Texas Legislature to permanently cap the appraised value of commercial and industrial property for property tax purposes. Currently, Texas property tax law includes temporary caps on how much non-homestead property values can increase annually for taxation, but these provisions require periodic renewal. This amendment would constitutionalize a permanent cap mechanism.

Why is this important

Property tax caps directly affect both business operating costs and local government revenue. A permanent cap on commercial property appraisals could reduce tax bills for businesses and investors while potentially limiting funding available to schools, counties, and other local services that depend on property tax revenue. The outcome depends heavily on how the Legislature would implement any permanent cap structure.

Potential points of contention

  • Local government funding impact: School districts and counties rely significantly on property tax revenue; permanent caps could reduce their budgets without alternative funding sources
  • Business vs. public services trade-off: While businesses benefit from lower tax burdens, permanent limits may force difficult choices between tax relief and maintaining public infrastructure, schools, and emergency services
  • Appraisal fairness concerns: Permanent caps could create disparities where similarly-situated properties pay vastly different taxes based on appraisal dates, raising equity questions
  • Constitutional rigidity: Embedding tax policy in the state constitution makes future adjustments difficult if economic conditions or funding needs change

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

Sign in to ask a question.