Relating to the rate at which interest accrues in connection with the deferral or abatement of the collection of ad valorem taxes on certain residence homesteads.
Impact
If passed, the bill would affect how interest accrues on delinquent property taxes, potentially easing the financial burden on homeowners who defer their tax payments. By shifting to a lower interest rate mechanism, the bill may incentivize residents to seek out tax deferrals, ultimately allowing them greater flexibility in managing their finances. This could provide substantial relief to a specific demographic struggling with property taxes, especially during economic downturns.
Summary
House Bill 108 addresses the accrual of interest during the deferral or abatement of collection of ad valorem taxes on certain residence homesteads. Specifically, it amends the Tax Code to set the interest rate that applies during this period to the five-year Constant Maturity Treasury Rate reported by the Federal Reserve, rather than the previously set rates. This change aims to provide more favorable conditions for homeowners seeking tax relief when they face financial difficulties.
Sentiment
The sentiment surrounding HB 108 appears to be supportive among those who advocate for taxpayer relief, particularly among legislators representing constituents affected by rising property taxes. Many see the proposed adjustments as a necessary measure to assist homeowners, although critics may express concerns regarding the fiscal implications of lowering interest rates for deferred taxes. The overall discussion reflects a level of compassion towards residents facing financial constraints.
Contention
Notable points of contention may arise from various stakeholders, including local governments, which could experience decreased revenue from deferred taxes. There is also potential for debate regarding the long-term financial implications of such relief measures. Some legislators might argue that while the intent is to support homeowners, the reduced rate could complicate local budget forecasts and necessitate careful consideration of how to balance property tax relief with community funding.
Relating to the rate at which interest accrues in connection with the deferral or abatement of the collection of ad valorem taxes on certain residence homesteads.
Relating to penalty and interest incurred on a delinquent ad valorem tax imposed on the residence homestead of an individual who is elderly or disabled.
Relating to the authority of the owner of a residence homestead to receive a discount for making an early payment of the ad valorem taxes on the homestead.
Relating to the determination and reporting of the number of residence homesteads of elderly or disabled persons that are subject to the limitation on the total amount of ad valorem taxes that may be imposed on the properties by school districts and of the number of residence homesteads of certain property owners for which the owner deferred collection of a tax, abated a suit to collect a delinquent tax, or abated a sale to foreclose a tax lien.
Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.
Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.
Relating to the determination and reporting of the number of residence homesteads of elderly or disabled persons that are subject to the limitation on the total amount of ad valorem taxes that may be imposed on the properties by school districts, or who utilize the property tax deferral program in section 33.06, Tax Code.
Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.
Relating to reporting ownership of mineral interests severed from the surface estate and the vesting of title by judicial proceeding to certain abandoned mineral interests.