Relating to the authority of an individual, before purchasing real property to be used as the individual's residence homestead, to request from the chief appraiser of the applicable appraisal district a preliminary determination of whether the property would qualify for a disabled veteran exemption if purchased by the individual and used for that purpose.
Impact
By allowing disabled veterans to ascertain their eligibility for property tax exemptions before completing a property transaction, the bill is designed to ease financial burdens associated with homebuying. This measure is anticipated to encourage home ownership among disabled veterans by providing them with crucial information at an early stage in the purchasing process. The preliminary determination could positively influence lending decisions by mortgage and title insurance companies, which would incorporate this information while assessing the financial profiles of veteran buyers.
Summary
House Bill 998 facilitates the purchasing process for disabled veterans seeking to acquire real property designated as their residence homestead. Specifically, the bill empowers individuals, prior to the purchase, to request a preliminary determination from the chief appraiser of their appraisal district regarding whether a property would qualify for a tax exemption under existing laws if it were to be purchased and used as their home. This proactive approach aims to inform disabled veterans of potential property tax relief, thus assisting them in financial planning when seeking residence.
Contention
Although the bill is primarily supportive of disabled veterans, potential points of contention may emerge regarding the reliability and accuracy of the preliminary determinations issued by the appraisal districts. Stakeholders might question whether this process adequately reflects the complexities and variabilities in property value assessments and tax regulations. By establishing a timeline for the issuance of determinations (not later than 30 days post request), the bill aims to ensure a timely response, but it remains to be seen how uniformly this will be implemented across different appraisal districts.
Notable_points
The bill explicitly specifies that the issuance of a preliminary determination does not affect the granting of the actual exemption, which may alleviate concerns about bureaucratic complications. Additionally, the effective date of the bill is set for September 1, 2025, providing a timeline for necessary preparations among relevant agencies and stakeholders to implement the new regulations.
Relating to the authority of an individual, before purchasing real property to be used as the individual's residence homestead, to request from the chief appraiser of the applicable appraisal district a preliminary determination of whether the property would qualify for a disabled veteran exemption if purchased by the individual and used for that purpose.
Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.
Relating to a limitation on increases in the appraised value for ad valorem tax purposes of the residence homesteads of military veterans, individuals who are disabled or 65 years of age or older, and their surviving spouses.
Relating to the limitation on the total amount of ad valorem taxes that a school district may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 20 consecutive tax years.
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.
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.
Relating to the authority of the governing body of a taxing unit other than a school district to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead and to the authority of the governing body of any taxing unit that has adopted an exemption from ad valorem taxation of a percentage of the appraised value of an individual's residence homestead to reduce the amount of or repeal the exemption.
Relating to the exemption from ad valorem taxation of the total appraised value of the residence homestead of the surviving spouse of a 100 percent or totally disabled veteran.