Texas House Bill HB3640

Texas 2023 - 88th Regular

• Filed: 3/6/23
• Out of House Committee: 4/18/23
• Voted on by House: 4/25/23

Caption

Relating to an exemption from ad valorem taxation of a portion of the appraised value of a property other than a residence homestead that is the primary residence of an adult who has an intellectual or developmental disability and who must be related to the owner or trustee of the property within a certain degree by consanguinity.

Impact

If passed, the legislation aims to alleviate financial obligations for families caring for adults with intellectual or developmental disabilities, promoting independence and stability. This bill seeks to amend the Texas Tax Code, which could lead to significant shifts in how ad valorem property taxes are applied to specific residences. By providing property tax relief, the bill could make it more feasible for families to retain ownership of their homes, thereby affecting broader societal views on property rights and support for disabled individuals and their families.

Summary

House Bill 3640 proposes an exemption from ad valorem taxation on a portion of the appraised value of properties that serve as the primary residences for adults with intellectual or developmental disabilities. The bill specifically focuses on real property not already considered a residence homestead, which allows families to better manage the financial burden of property taxes. It stipulates that the adult with disabilities must be related to the owner or trustee within a certain degree of consanguinity, ensuring that the benefit applies directly to familial properties supporting individuals with special needs.

Sentiment

The sentiment toward HB 3640 appears largely supportive among lawmakers as it focuses on an underserved population. Legislators and advocates recognize that property tax burdens can contribute to economic hardship for families looking after adults with disabilities. During committee discussions, representatives emphasized the importance of not penalizing families who have made accommodations for their loved ones. However, some concerns were raised about the potential financial implications for local governments, which rely on property taxes as a fiscal resource.

Contention

While the overall sentiment is positive, there are points of contention related to the enforcement and administration of the tax exemption. Critics worry about the conditions under which the exemption might apply and whether it might inadvertently create disparities among families depending on their ability to navigate the application process. Questions about eligibility criteria and how consistently this exemption could be enforced also arose, highlighting the necessity to clarify regulations surrounding the bill to avoid future complications in tax assessment and collection.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: New Section
  • Section: New Section
  • Section: New Section