Texas House Bill HB119

Texas 2017 - 85th 1st C.S.

Caption

Relating to the authority of the governing body of a taxing unit other than a school district to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead and the authority of the governing body of certain taxing units that have adopted such an exemption to reduce the amount of or repeal certain other exemptions.

Impact

The implementation of HB 119 could significantly impact property taxation at the local level, granting municipalities and counties greater authority to adjust tax burdens on residents. By enabling local taxing units to adopt exemptions, the bill aims to alleviate some of the financial pressures faced by homeowners, especially those with lower or fixed incomes. The revenue implications of these exemptions could vary depending on how many taxing units decide to adopt them and the extent of the exemptions granted, potentially resulting in decreased funding for public services reliant on property tax revenues.

Summary

House Bill 119 seeks to amend the Texas Tax Code by allowing the governing bodies of taxing units, excluding school districts, to adopt exemptions from ad valorem taxation for a portion of an individual's residence homestead. Specifically, the bill introduces provisions for a $5,000 exemption on the appraised value of a residence, with an allowance for larger exemptions based on the average market value of homesteads within a taxing unit. This legislative change intends to provide financial relief to homeowners and expand the authority of local governments regarding property taxes.

Contention

While proponents of HB 119 argue that it empowers local governments to tailor tax relief measures to meet the needs of their communities, critics may voice concerns regarding the negligence of comprehensive state oversight. There may be apprehensions that piecemeal tax relief could lead to disparities in taxation across different regions, creating inequities in how tax burdens are distributed among residents. Additionally, opponents could highlight the potential financial strain on local governments if increased exemptions result in significant reductions in overall tax revenue for essential services.