Texas House Bill HB622

Texas 2019 - 86th Regular

Caption

Relating to a temporary limitation on the total amount of ad valorem taxes that may be imposed by a taxing unit on a residence homestead rendered uninhabitable or unusable as a result of a natural disaster.

Impact

The implications of HB 622 are significant for residents in disaster-prone areas. By enacting this limitation, the bill aims to prevent unexpected tax hikes that could exacerbate financial strain on individuals already facing the challenges of recovery. The changes will only apply to homes that qualify as a residence homestead and are located within areas officially declared disaster zones by the governor. This legislative effort highlights the state’s commitment to supporting homeowners during crises and promoting stability in affected communities.

Summary

House Bill 622 introduces a provision for a temporary limitation on the total amount of ad valorem taxes that can be imposed on a residence homestead that has been rendered uninhabitable or unusable due to a natural disaster. This legislative measure is intended to provide immediate financial relief to homeowners affected by such disasters, ensuring that they are not burdened by increased property taxes during a time of significant hardship. The bill specifies that a taxing unit, such as a school district or municipality, cannot increase property taxes on these damaged homes above the level imposed in the tax year when the property became uninhabitable.

Contention

While the bill is positioned as a necessary measure for disaster relief, it may not be without contention. Opponents may argue that limiting tax revenue could constrain the ability of local government units to maintain essential services following a disaster. Additionally, the requirement for property owners to apply for the tax limitation within a specific timeframe could lead to concerns regarding accessibility and uniformity in the application process. Thus, while aiming to protect homeowners, discussions around this bill may reveal varying perspectives on balancing taxpayer relief with the operational needs of local government entities.