Texas House Bill HB158

Texas 2017 - 85th 1st C.S.

Caption

Relating to the rate at which interest accrues in connection with the deferral or abatement of the collection of ad valorem taxes on an appreciating residence homestead.

Impact

The bill's amendments aim to provide statutory relief to homeowners, particularly those experiencing financial difficulties, thereby encouraging the deferral or abatement of taxes without incurring excessive penalties. This could have long-term implications on state tax revenues, as local taxing units may see a reduction in immediate revenue during deferral periods. The adjustment in interest rate encourages homeowners to take advantage of deferral provisions, potentially reducing the burden of immediate tax payments.

Summary

House Bill 158 is an act that pertains to the rate of interest that accrues during the deferral or abatement of the collection of ad valorem taxes on appreciating residence homesteads. The bill specifically amends Section 33.065(g) of the Tax Code, lowering the annual interest rate during such periods from eight percent to five percent. This change directly impacts homeowners who defer or have their property taxes abated, offering them a lower financial burden during what can be a challenging time in regards to tax payments.

Contention

While lowering the interest rate on deferred tax payments has the potential to benefit taxpayers, it may also raise concerns among local governments that rely on property taxes for essential services. There could be opposition based on fears that such changes might hinder the ability of local authorities to collect necessary funds to operate. Additionally, discussions around maintaining adequate funds for community services versus the need to alleviate homeowner financial pressures may lead to debates among lawmakers, ultimately influencing the bill's fate in legislative discussions.