Texas 2019 - 86th Regular

Texas Senate Bill SB738

Caption

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

The changes proposed in SB738 have significant implications for homeowners with residence homesteads who are eligible for tax deferral or abatement. By tying the interest rate to a federal reserve rate rather than a fixed percentage, the bill is intended to align the local tax liabilities with broader market conditions. This shift might make tax deferrals more appealing for homeowners by lowering the overall cost associated with deferring tax payments, thereby aiding those who may face financial challenges.

Summary

Senate Bill 738 aims to amend sections of the Tax Code to modify the interest rates that apply during the deferral or abatement of ad valorem taxes on certain residence homesteads. Specifically, the bill proposes that the interest rates during these deferrals be set according to the five-year Constant Maturity Treasury Rate reported by the Federal Reserve Board on January 1 of each year, instead of the previously specified rates. This change is expected to provide financial relief to homeowners undergoing tax abatement as it potentially reduces the financial burden during periods of deferred tax collection.

Contention

While supporters argue that SB738 provides necessary relief to homeowners by reducing their tax burden, there may be contention regarding the implications for state revenue. Opponents might express that lowering the interest rates on deferred taxes could limit resources for local governments that depend on property tax revenue to fund essential services. There may also be concerns about whether this bill adequately addresses the needs of all taxpayers or predominantly benefits those in more affluent areas.

Companion Bills

TX HB1148

Same As 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.

TX HB1148

Same As 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.

Previously Filed As

TX HB721

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.

TX HB740

Relating to the deferral or abatement of the collection of ad valorem taxes on an appreciating residence homestead.

TX HB4686

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.

TX HB1244

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.

TX HB69

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.

TX HB32

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.

TX HB794

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.

TX HB117

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.

TX HB4829

Relating to the collection of delinquent ad valorem taxes.

TX HB4828

Relating to the collection of delinquent ad valorem taxes.

Similar Bills

No similar bills found.