Property Rights in Texas

The Safeguarding Of Landowner Protection Amid Legislative Changes

Property rights are fundamental to Texas’s legal framework, embodying the state’s long-standing ethos of independence and individual ownership. For generations, Texans have prized the freedom to use, develop, and manage their own land, which remains an integral part of the state’s culture and economic vitality.

Over the past decade, the landscape of property rights in Texas has experienced a number of statutory changes aimed at balancing individual rights with the state’s developmental, environmental, and public policy needs.

These shifts have implications for landowners and how they align with the principles of retaining robust property rights.

The Foundation Of Property Rights In Texas

Texas’s property rights are rooted in common and statutory law, underscoring the importance of private land ownership. Under the Texas Constitution, property ownership is treated with great respect, granting landowners the power to control, use, and transfer their land. However, this fundamental right does not come without limitations. The state government and local authorities wield regulatory power to enact zoning laws, environmental protections, and eminent domain.

Historically, Texas has maintained a strong stance in favor of landowners, exemplified by constitutional provisions and case law that protect against undue government encroachment. The “Castle Doctrine,” for instance, illustrates Texans’ commitment to property security, affirming the right to defend one’s property without a duty to retreat.

EMINENT DOMAIN: A PERSISTENT ISSUE

One of the most significant areas in which property rights intersect with state power is eminent domain. Eminent domain allows the government or private entities (under specific circumstances) to seize private property for public use, provided just compensation is given. While this principle is accepted in many jurisdictions across the United States, Texas has taken steps to fortify landowner protections against what many perceive as overreach.

Over the past decade, legislative adjustments have aimed to clarify and reinforce the protections afforded to landowners facing eminent domain. The 2019 enactment of Senate Bill 421 was a pivotal legislative change that sought to reform the eminent domain process. This bill, known as the “Landowner Bill of Rights,” was introduced to increase transparency and ensure fair negotiations between landowners and entities seeking to acquire land. Though the bill did not pass in its entirety during that legislative session, it brought significant attention to the inadequacies of eminent domain laws in Texas.

Senate Bill 726, passed in 2021, took important steps to revise the condemnation process. This statute requires condemning entities to provide a clear and understandable offer to landowners before negotiations and mandates the inclusion of additional information that supports the offer. It aimed to curb the practice of “low-ball” offers, which previously put landowners at a disadvantage.

Zoning And Land Use Regulations

Zoning and land-use regulations have long been areas of concern for property owners, as they can impose restrictions that affect the use and value of property. Cities in Texas possess authority to implement zoning ordinances to ensure orderly development, promote public safety, and protect environmental interests. However, these regulations must balance community needs with individual rights.

THE PAST DECADE HAS SEEN AN EVOLUTION IN HOW ZONING LAWS ARE CRAFTED AND ENFORCED, OFTEN SPARKING DEBATE ABOUT PROPERTY RIGHTS.

One notable case that highlights this tension is City of Austin v. Reagan National Advertising of Austin, LLC, where property rights intersected with regulatory authority. The Texas Supreme Court ruled in favor of the city, supporting its right to regulate digital billboards, emphasizing public safety and aesthetic considerations. This decision reinforced municipalities’ power to regulate land use for broader community welfare while raising concerns among property owners about the potential for regulatory overreach.

Recent legislative discussions have also focused on the idea of “grandfathering” existing property rights. House Bill 2439, enacted in 2019, was significant as it restricted local municipalities from adopting or enforcing regulations that prevent the installation of building materials previously approved under older codes. This law protected the rights of landowners to maintain their property without adhering to new, potentially burdensome ordinances.

Environmental Regulations And Property Rights

Environmental considerations have become increasingly relevant in Texas property law, as new regulations emerge to address ecological sustainability. These regulations often impose restrictions that limit how property can be developed or utilized, impacting landowners’ rights. However, Texas has aimed to maintain a balance between promoting environmental welfare and protecting individual property rights.

For example, water rights and management have been central to property discussions in recent years, especially given Texas’ history of droughts and water shortages. The Texas Water Code, which governs water allocation and rights, has undergone several modifications to ensure equitable distribution while respecting private property ownership. Senate Bill 8, passed in 2021, required the development of a statewide flood plan to mitigate flood risks, especially in light of hurricanes and other natural disasters. While this initiative was crucial for public safety and infrastructure resilience, it raised concerns about how new floodplain regulations could impact property owners’ development rights.

Additionally, in 2021, the Texas Supreme Court decided Houston Unlimited, Inc. Metal Processing v. Mel Acres Ranch, where it ruled on how environmental damage claims can be made. The ruling affected how property owners could seek compensation for damages due to nearby industrial activities that result in pollution or environmen tal degradation. This decision clarified landowners’ standing in environmen tal tort claims, fortifying their rights to seek redress when their land is nega tively impacted by external actions.

Property Tax And Valuation Shifts

Property taxation has also seen de velopments that impact individual landowners. Texas’ reliance on proper ty taxes to fund local governments and schools means that property owners often face rising valuations and tax bills. While the state does not have an income tax — making property taxes an essential revenue source — many property owners have expressed concern about the impact on their rights and financial stability.

In 2019, Senate Bill 2, known as the Texas Property Tax Reform and Transparency Act, was enacted to address these concerns. This statute imposed a 3.5 percent revenue growth cap for cities and counties, above which voter approval would be required. This change was significant in empowering property owners to have a more substantial voice in local tax increases, aligning with the principle of safeguarding property rights by limiting the potential for unchecked tax hikes.

SHORT-TERM RENTALS AND HOMEOWNER RIGHTS

One of the emerging challenges for property owners in Texas is the regulation of short-term rentals (STRs) such as those facilitated by Airbnb and VRBO. While these platforms have offered new economic opportunities for homeowners, they have also led to disputes over community impact, zoning laws, and property rights.

Cities like Austin and San Antonio have enacted ordinances that restrict STRs, citing noise complaints, traffic issues, and housing market disruptions. In contrast, advocates for STRs argue that such ordinances infringe on the fundamental right of property owners to use their land as they see fit. The debate over STRs reached the Texas Supreme Court in Zaatari v. City of Austin, where plaintiffs contended that the city’s stringent regulations violated their property rights. While the case is still a point of contention, it exemplifies how new forms of property usage are testing the limits of individual rights against regulatory interests.

The past decade in Texas has been marked by significant legislative and judicial developments that have impacted property rights. From eminent domain reforms and zoning laws to environmental regulations and short-term rental debates, the balance between landowner protections and government authority remains a dynamic and evolving aspect of the state’s legal landscape.

Despite new regulatory pressures, Texas has remained committed to reinforcing individual property rights through legislative measures that aim to ensure transparency, fairness, and respect for landowners’ interests. While certain legislative changes have placed new obligations or limitations on property use, they have also provided avenues for landowners to voice their concerns and influence future policy.

As Texas continues to grow and face challenges related to urbanization, environmental sustainability, and economic development, the protection of property rights will remain an important battleground. It is essential for policymakers, property owners, and legal advocates to engage in discussions that uphold the principles of private property while adapting to the changing needs of the state. Through balanced and thoughtful legislation, Texas can continue to safeguard the property rights that are foundational to its history and prosperity.