Texas House Bill HB96

Texas 2023 - 88th 4th C.S.

• Filed: 11/9/23

Caption

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

Impact

If passed, this bill would amend Section 11.13 of the Texas Tax Code, specifically by introducing new subsections related to these exemptions. The expectation is that it will provide financial relief to elderly residents, notably impacting those who have historically been able to obtain tax exemptions. Moreover, this legislation is set to come into effect on January 1, 2025, contingent upon the approval of a related constitutional amendment in the voters' election. The bill's implementation signifies a broader initiative to adjust the tax structure in a way that better supports the aging population of Texas.

Summary

House Bill 96 aims to provide an exemption from ad valorem taxation for the total appraised value of the residence homesteads of certain elderly individuals and their surviving spouses. The primary eligibility criterion is that the individual must be 72 years of age or older and must have received an exemption for their residence homestead for at least ten consecutive years before being eligible for this tax benefit. This legislation is designed to alleviate the financial pressure on elderly homeowners who may be on fixed incomes, allowing them to retain their properties without the burden of significant property taxes.

Sentiment

The sentiment surrounding HB 96 appears to be positive among proponents, particularly those who advocate for the rights of the elderly and financial justice for fixed-income individuals. Supporters argue that this legislation is essential for safeguarding vulnerable populations who may face the risk of losing their homes due to rising property taxes. However, there may also be contention regarding the financial implications of the exemption on local governments and funding for public services, as reduced property tax revenues could affect community services that rely on such funding.

Contention

Notable points of contention include the bill's reliance on the prior approval of a constitutional amendment to take effect, which may raise questions about legislative priorities and the potential pushback from local government entities concerned about budget shortfalls. There is also a debate regarding the long-term sustainability of such tax exemptions, particularly as communities evaluate the balance between supporting elderly residents and ensuring adequate funding for essential services. This dynamic is crucial in addressing the broader implications of tax reforms related to housing and aging demographics.

Texas Constitutional Statutes Affected

Education Code

• Chapter 48. Foundation School Program
  • Section: 2543

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: 302

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: 13
  • Section: 42
  • Section: 43
  • Section: New Section

• Chapter 26. Assessment
  • Section: 10
  • Section: 112

• Chapter 33. Delinquency
  • Section: 01