According to the Legislative Budget Board (LBB), SJR 84 is not expected to have any significant fiscal impact on the state budget, apart from the required cost of publishing the resolution for voter consideration. The estimated cost to the state for this publication is $191,689, which is a standard expense for constitutional amendments placed on the ballot.

Importantly, the resolution itself does not directly implement a tax exemption; it merely authorizes the Legislature to enact such a policy through general law. Therefore, no direct changes to tax revenues will occur unless and until enabling legislation is passed. Because of this structure, the LBB anticipates no immediate fiscal implications for local governments either. Any future fiscal effects on taxing entities—such as counties, cities, or school districts—would depend entirely on the scope, duration, and eligibility criteria of the tax exemption as defined by future legislation.

This framework allows lawmakers to craft narrowly tailored exemptions in response to specific fire-related disasters without imposing broad or automatic revenue losses on local taxing units. As such, while the long-term fiscal impact remains indeterminate until implementing legislation is passed, the short-term budgetary effect of the resolution is minimal.

Texas Policy Research recommends that lawmakers vote YES on SJR 84 based on its narrow scope, alignment with liberty principles, and practical benefits for Texans facing catastrophic loss. The resolution proposes a constitutional amendment to allow the Texas Legislature to enact a temporary ad valorem tax exemption for residence homesteads that are completely destroyed by fire. This authority enables the state to provide targeted, compassionate relief without mandating automatic expenditures or permanent tax policy changes. The bill functions as the enabling constitutional groundwork for SB 467, which would implement the details of the exemption​.

The resolution promotes Individual Liberty and Private Property Rights by ensuring that Texans are not taxed on the value of a structure that no longer exists. It reflects limited government intervention by confining state involvement to narrowly defined, exceptional circumstances. Furthermore, it preserves local government autonomy by allowing, rather than requiring, future legislation to define the exemption’s parameters, including duration and eligibility.

From a fiscal perspective, the Legislative Budget Board finds no significant impact on the state budget, aside from the $191,689 cost for publication of the ballot language. Importantly, there is no immediate effect on local government revenue, since the resolution does not itself grant any exemptions. Its flexibility and contingent nature mean any future fiscal implications would depend on the specifics of the implementing statute.

Overall, SJR 84 reflects sound constitutional practice by allowing voters to decide on a narrow policy expansion that enhances fairness in Texas’s tax structure while safeguarding core liberty values and fiscal discipline.

• Individual Liberty: The resolution supports individual liberty by ensuring Texans aren’t unfairly taxed on property that no longer exists. When someone’s home is destroyed by fire, it’s a traumatic loss—this measure helps protect them from further financial harm while they recover. It empowers homeowners to focus on rebuilding rather than navigating tax burdens during a crisis.
• Personal Responsibility: The resolution is neutral on this principle. It does not absolve property owners of their responsibility to maintain insurance or rebuild, but it acknowledges that when disaster strikes, some short-term government flexibility is appropriate. It avoids moral hazard by making the exemption temporary and subject to legislative control.
• Free Enterprise: By easing the tax burden after a disaster, the resolution may help families and small businesses tied to homesteads get back on their feet more quickly. That can indirectly stabilize neighborhoods, reduce disruption to local economies, and support recovery in ways that promote continued economic activity and private investment.
• Private Property Rights: This is where the bill has its strongest alignment. Property owners have a fundamental right not to be taxed on value that no longer exists. SJR 84 protects those rights by giving the Legislature a way to suspend taxes on destroyed improvements, reinforcing the idea that taxation should reflect real-world value and conditions.
• Limited Government: Rather than mandate a program or force spending, the resolution gives the Legislature permission to act if it chooses. It’s a flexible, narrowly tailored tool—not a broad new entitlement or bureaucracy. That keeps the government responsive but restrained, consistent with the ideal of limited intervention.