Proposing a constitutional amendment to authorize the legislature to provide for an exemption from ad valorem taxation by a school district of a portion of the market value of certain leased residential real properties, to establish and prescribe the permissible uses of the property tax relief to rental households fund, and to include payments from the property tax relief to rental households fund in the exception of certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.

89th Legislature (2025) Introduced by John Bryant

Texas constitutional amendment enabling school districts to reduce property taxes on leased residential real estate and fund rental assistance from the savings, exempt from state spending caps.

Referred to Ways & Means

#comptrollerofpublicaccounts(v2608) #housing--general(i0405) #propertyinterests--landlord&tenant(i0610) #propertyinterests--realproperty(i0595) #resolutions--constitutionalamendments(i0661) #taxation--property-exemptions(i0793)

Legislative bill overview

HJR 200 proposes a Texas constitutional amendment that would allow school districts to exempt a portion of leased residential properties from property taxes and establish a "property tax relief to rental households fund" using the tax savings. The amendment would also carve out these relief payments from constitutional limits on state spending growth.

Why is this important

Housing affordability is a critical issue in Texas, particularly for renters facing rising costs. This proposal attempts to address rental housing affordability by redirecting school district property tax revenue, though it reduces funding typically available to public schools. The constitutional amendment would require voter approval and fundamentally alter how school district revenue is allocated and spent.

Potential points of contention

School funding impact: Exempting leased residential properties from school district ad valorem taxes directly reduces revenue available for public education, which could pressure other funding sources or services

Equity questions: The fund would benefit rental property owners/operators and their tenants, but unclear how benefits would actually reach renters versus property owners, and whether it addresses root causes of affordability

Constitutional spending limits: Carving out rental relief payments from appropriations growth caps could set precedent for other exemptions, potentially weakening overall fiscal constraints

Implementation details: The bill lacks specifics on fund administration, eligibility criteria, and how tax savings translate to actual rental household relief