Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.
Impact
If enacted, SB2 will substantially modify state laws regarding property taxation. The bill's provisions include reducing the maximum compressed tax rate for the 2023-2024 school year and adjusting the calculation of local revenue used for funding education. Additionally, it introduces a circuit breaker limitation to better control appraisal increases for properties not classified as residential homesteads, thereby promoting a fairer tax landscape statewide. Collectively, these changes are anticipated to enhance state aid for certain school districts and potentially stabilize or lower taxes for many homeowners across Texas.
Summary
Senate Bill 2, known as the Property Tax Relief Act, aims to provide significant financial relief to Texas taxpayers through the school finance system. Specifically, the bill proposes exemptions, limitations on property appraisals, and improvements to property tax administration. Key elements include a historic $18 billion in property tax relief aimed at making the tax system more equitable while offering direct benefits to residents in the state. The legislation represents a concerted effort to ease the tax burden on Texans, particularly homeowners, establishing a framework for ongoing changes in how property taxes are assessed and collected.
Sentiment
The sentiment surrounding SB2 has been predominantly positive among proponents, who view it as a necessary reform to alleviate financial strain on taxpayers. Legislators emphasize the transformative nature of the bill, highlighting significant investment in property tax cuts as a historic moment for Texas. However, there are concerns raised by critics who argue that the bill may overlook specific local needs and negatively impact funding for public schools. As the bill navigates through legislative discussions, the mixed sentiment reflects ongoing debates about how best to balance tax relief with responsible funding for vital services.
Contention
Notable points of contention stem from concerns about the potential effects of reduced tax revenue on local services and school funding. Critics argue that while property tax reductions are beneficial, they could lead to under-funded public services if not carefully managed. As various stakeholders engage in discussions about the implications of SB2, the conversations will likely continue to focus on the trade-offs between immediate tax relief and long-term financial stability for communities. Overall, while SB2 is celebrated by many as a step forward for tax reform, it is also scrutinized for its long-term effects on the state's fiscal landscape.
Texas Constitutional Statutes Affected
Tax Code
Chapter 31. Collections
Section: 01
Section: 01
Section: New Section
Chapter 26. Assessment
Section: 04
Section: 0401
Section: 08
Section: 09
Section: New Section
Section: 0401
Section: 08
Section: 09
Section: 04
Section: 0401
Section: 08
Section: 09
Section: New Section
Chapter 42. Judicial Review
Section: 26
Chapter 23. Appraisal Methods And Procedures
Section: 231
Section: 231
Section: 231
Chapter 1. General Provisions
Section: 12
Section: 12
Section: New Section
Section: 11
Section: New Section
Chapter 41. Local Review
Section: 41
Chapter 11. Taxable Property And Exemptions
Section: 13
Section: New Section
Government Code
Chapter 403. Comptroller Of Public Accounts
Section: 302
Section: 302
Section: 302
Education Code
Chapter 48. Foundation School Program
Section: 2555
Section: 2542
Section: 2543
Section: 2556
Section: 2542
Section: 2543
Section: New Section
Chapter 49. Options For Local Revenue Levels In Excess Of Entitlement
Very Similar
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.
TX HJR2
Enabling for
Proposing a constitutional amendment to authorize the legislature to establish a temporary limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes; to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads; to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts; to except certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations; and to authorize the legislature to provide for a four-year term of office for a member of the governing body of certain appraisal entities.
TX HJR2
Enabling for
Proposing a constitutional amendment to authorize the legislature to establish a temporary limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes; to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads; to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts; to except certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations; and to authorize the legislature to provide for a four-year term of office for a member of the governing body of certain appraisal entities.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.
Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
Relating to a reduction in the maximum compressed tax rate of a school district and additional state aid for certain school districts impacted by compression, an increase in the amount of certain exemptions from ad valorem taxation by a school district applicable to residence homesteads, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amounts, and the protection of school districts against the resulting loss in local revenue.
Relating to a reduction in the maximum compressed tax rate of a school district and additional state aid for certain school districts impacted by compression.
Relating to the elimination of certain property taxes for school district maintenance and operations and the provision of public education funding by increasing the rates of certain state taxes.
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.
Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.
Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.
Relating to public school finance matters, including the imposition of a state ad valorem tax for elementary and secondary school purposes and a school district ad valorem enrichment tax.
Relating to providing school district property tax relief through rent-relief and through adjusting entitlements, compression, and exemptions under the public school finance system.