Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HJR30 by Goodwin (Proposing a constitutional amendment to authorize the legislature to provide for a limitation on the maximum appraised value for ad valorem tax purposes of certain leased residential real property.), As Introduced
No fiscal implication to the State is anticipated, other than the cost of publication.
The cost to the state for publication of the resolution is $191,689.
The resolution would amend Article VIII of the Texas Constitution to authorize the Legislature by general law to provide for a limitation on the maximum appraised value of certain leased residential real property for purposes of property taxation.
Property eligible for the limitation would include only that which is: 1) leased single-family residential property; 2) used as a primary residence by the lessee; and 3) leased to the lessee for a rent at or below fair market rent. The maximum appraised value of such properties for a tax year could be limited to the lesser of market value; or 110 percent, or more, of the appraised value of the property for the preceding tax year.
The Legislature by general law could prescribe additional eligibility requirements. The resolution would provide conditions for the effective date and expiration of the limitation on properties.
Adoption of the proposed constitutional amendment alone would have no fiscal impact on the state or units of local government. Any fiscal impact would be associated with the corresponding enabling legislation (HB 203).
Local Government Impact
No fiscal implication to units of local government is anticipated.