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Bill

HJR 39

Proposing a constitutional amendment to authorize the legislature to set a lower limit on the maximum appraised value of a residence homestead for ad valorem taxation.

89th Legislature (2025) Introduced by Will Metcalf

Constitutional amendment allowing Texas Legislature to lower the maximum annual appraisal increase cap on primary residences, potentially reducing homeowner property taxes but decreasing public school and local government revenues.

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)
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Bill Summary · HJR 39

Legislative bill overview

HJR 39 proposes a constitutional amendment that would allow the Texas Legislature to reduce the cap on how much a homeowner's primary residence can be appraised for property tax purposes. Currently, Texas law limits annual increases in a home's appraised value to 10% regardless of actual market value. This amendment would give lawmakers authority to lower that threshold.

Why is this important

Property tax appraisals directly determine the amount homeowners pay in annual taxes. Lowering the appraisal cap would constrain how quickly assessed values can increase, potentially reducing tax bills for homeowners in appreciating markets—particularly relevant in areas experiencing rapid growth like Austin and Dallas. However, this also reduces revenue to local governments, schools, and special districts that depend on property taxes.

Potential points of contention

  • Revenue impact on schools and local services: Reduced appraisal values mean less property tax revenue for public schools, counties, and municipalities without corresponding spending cuts or alternative funding sources
  • Market fairness concerns: Homeowners in slower-appreciating areas may pay taxes on values closer to market price while those in hot markets benefit disproportionately from caps
  • Implementation ambiguity: The bill doesn't specify what the new lower limit would be, leaving the actual policy details to future legislative discretion

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

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