Texas House Bill HB5157

Texas 2023 - 88th Regular

• Filed: 3/10/23

Caption

Relating to the amount of the exemption from ad valorem taxation by a school district of the appraised value of the residence homestead of a person who is elderly or disabled.

Impact

The passage of HB 5157 would have substantial implications for state tax policy, particularly regarding property taxation. By increasing the exemption for elderly and disabled individuals, the bill aims to provide financial relief and enhance the economic stability of these residents. This move could lead to a reduction in school district revenues that rely heavily on property taxes, prompting discussions about offsetting measures to maintain funding levels in education. Additionally, this exemption increase may encourage these groups to remain in their homes longer, contributing to community stability.

Summary

House Bill 5157 proposes to amend the Texas Tax Code by increasing the exemption from ad valorem taxation for elderly or disabled individuals regarding their residence homestead. Specifically, it aims to raise the exemption amount to $560,000 from the previous $10,000, which would significantly lessen the tax burden on qualifying individuals. This bill has been introduced by Representative Jones of Harris and is seen as a response to the rising property taxes affecting vulnerable populations in Texas. The change is scheduled to take effect on January 1, 2024, contingent upon the approval of a constitutional amendment by Texas voters that would allow this increase in exemptions.

Sentiment

Overall sentiment around HB 5157 appears positive among supporters who view the increased exemption as a necessary step to support the financial wellbeing of elderly and disabled residents. Advocacy groups focused on senior and disability rights have lauded the proposal, suggesting it aligns with efforts to mitigate poverty among these populations. However, there are concerns expressed by some legislators regarding the potential implications for local school district funding. Critics argue that while the bill offers immediate tax relief, it could lead to longer-term fiscal challenges for educational resources.

Contention

A notable point of contention surrounding HB 5157 is the fiscal responsibility associated with the increased tax exemption. While the intent to support vulnerable populations is widely recognized, lawmakers are grappling with the potential revenue repercussions for local schools. Critics are concerned that increasing the exemption without a corresponding mechanism to ensure funding stability for educational institutions may detrimentally affect school budgets, thereby impacting public education quality across Texas. The conversation around this bill underscores the ongoing debate between providing immediate tax relief and ensuring sustainable funding for essential state services.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: New Section