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 impact of HB 739 could be significant for Texas residents whose property taxes are deferred or abated. By potentially lowering the interest accrued during the deferral period, homeowners may find relief from the financial burden of accumulating property taxes while facing hardship. This measure seems particularly beneficial for individuals who may struggle to pay their taxes due to financial difficulties such as prolonged illness, age, or other economic factors. The bill effectively aims to strike a balance between tax collection needs of the state and the financial capacity of homeowners.
Summary
House Bill 739 addresses the regulations surrounding the deferral or abatement of ad valorem taxes on certain residence homesteads. The bill proposes amendments to Section 33.06(d) of the Texas Tax Code to adjust the interest rate that accrues during the period in which tax collection is deferred or abated. Under the new provisions, the annual interest rate applied during such periods would be the lesser of the five-year Constant Maturity Treasury Rate reported by the Federal Reserve Board as of January 1 of that year or a flat rate of five percent. This change aims to provide a more favorable interest rate for homeowners who qualify for tax deferral or abatement under specific circumstances.
Contention
While support for the bill may come from groups advocating for homeowners' rights, it is plausible that discussions around HB 739 will also encounter contention regarding its fiscal implications. Critics might argue that lowering interest rates during tax deferral periods could lead to reduced revenue for local governments, potentially affecting local public services reliant on property tax funding. Proponents may counter that the long-term benefit of assisting homeowners outweighs these concerns, especially as stability in housing is crucial for community welfare. The bill's actual effect on local budgets and services will likely become a point of discussion as it progresses through the legislative process.
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.
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.
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.
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.
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.