Texas House Bill HB58

Texas 2023 - 88th 2nd C.S.

• Filed: 6/30/23

Caption

Relating to an exemption from ad valorem taxation by a school district of a dollar amount or a percentage, whichever is greater, of the appraised value of a residence homestead, an adjustment of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of a person who is elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

Impact

The introduction of HB 58 is set to have significant implications on state taxation laws and the financial management of school districts. By adjusting exemption limits and ensuring that school districts receive additional state aid to offset potential revenue losses resulting from these exemptions, the bill attempts to guard against diminished resources for education while providing relief to specific groups. It is particularly aimed at making housing more affordable for elderly and disabled individuals, promoting financial stability in these communities.

Summary

House Bill 58 focuses on providing an exemption from ad valorem taxation imposed by school districts on the residence homesteads of elderly and disabled individuals. The bill stipulates that eligible individuals can receive either a fixed exemption amount of $40,000 or a percentage exemption of 26.7% of the appraised value, whichever is greater. It also includes provisions for an adjustment of limitations on total property taxes imposed on such homesteads, ensuring that taxation does not exceed amounts charged in earlier years, thereby preserving financial protections for vulnerable populations.

Sentiment

The sentiment surrounding HB 58 appears to be largely positive among its supporters, who view it as a necessary measure to protect vulnerable populations from escalating taxes. Advocacy groups representing the interests of the elderly and disabled are likely to support this legislation, emphasizing its potential to alleviate financial pressures. However, there may be concerns raised about the financial impact on school districts and the extent of state aid required to mitigate revenue losses, suggesting a more nuanced debate exists around its economic ramifications.

Contention

Notably, some contention may arise regarding the sustainability of the proposed financial adjustments for school districts, particularly if the exemptions lead to substantial reductions in their operating budgets. The bill reflects an ongoing discussion about state vs. local governance—specifically how to balance the needs of individual taxpayers with the financial health of local education systems. Critics might argue that without careful oversight, such tax exemptions could undermine the resources available for public education.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: 13
  • Section: 26

Education Code

• Chapter 48. Foundation School Program
  • Section: 2556
  • Section: 2542
  • Section: 2543

• Chapter 46. Assistance With Instructional Facilities And Payment Of Existing Debt
  • Section: 071

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: 302