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Bill

HJR 104

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 Jeff Barry

Texas proposes constitutional amendment authorizing legislature to permanently cap appraised values of commercial property for property tax calculation purposes.

Referred to s/c on Property Tax Appraisals by Speaker
#propertyinterests--realproperty(i0595) #resolutions--constitutionalamendments(i0661) #taxation--property-appraisals&appraisaldistricts(i0792)
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Bill Summary · HJR 104

Legislative bill overview

HJR 104 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, property values can increase significantly during appraisals, which increases tax bills for business owners and commercial property holders. This amendment would give lawmakers permanent authority to limit how much a property's taxable value can increase year-to-year.

Why this is important

Property tax appraisals directly affect how much businesses and commercial property owners pay in taxes annually. Capping appraised values could reduce tax burdens for commercial real estate holders, potentially affecting tax revenue for schools, counties, and municipalities that depend on property taxes. The outcome hinges on how aggressively any cap would be implemented and which properties would be covered.

Potential points of contention

  • Revenue impact on local services: Schools, counties, and cities rely heavily on property tax revenue; permanent caps could reduce funding for education, law enforcement, and infrastructure without corresponding spending cuts or alternative revenue sources
  • Definition and scope of affected properties: The bill specifies "other than a residence homestead," leaving ambiguity about which commercial properties qualify and whether agricultural land or specific business types receive different treatment
  • Permanence concern: Once enshrined in the constitution, changing the cap would require another constitutional amendment, making future adjustments difficult even if economic conditions or local needs shift dramatically

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

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