Texas House Bill HB1367

Texas 2025 - 89th Regular

• Filed: 11/18/24

Caption

Relating to the authority of the commissioners court of a county to adopt an exemption from ad valorem taxation by the county of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead.

Impact

This legislation aims to provide counties with the flexibility to alleviate the tax burden on homeowners. By granting the commissioners court the authority to establish exemptions, HB1367 could lead to significant changes in how local governments approach property taxation. This shift may result in varying tax obligations across counties depending on whether they choose to adopt such exemptions. If successful, this could lead to a more equitable tax environment for homeowners, ensuring that those with lower-income or financial distress have reduced tax liabilities.

Summary

House Bill 1367 seeks to empower the commissioners court of a county in Texas to adopt exemptions from ad valorem taxation on a portion of the appraised value of an individual's residence homestead. The bill proposes that these exemptions can be expressed in a dollar amount and emphasizes the ability of local government entities to mitigate resident tax burdens. Specifically, the bill allows for exemptions of up to $100,000 from the appraised value of a homestead, enhancing the financial relief for property owners in participating counties.

Contention

Notably, the bill is contingent upon the approval of a constitutional amendment, which would authorize counties to adopt the proposed exemption before its implementation. If voters do not approve this amendment, the bill would have no legal effect. This introduces a layer of contention surrounding the bill's future viability. Critics may argue that such exemptions could reduce essential funding for public services at the local level, as property taxes often contribute to schools and infrastructure. Proponents, however, would stress the need for tax relief for residents struggling to maintain their homes amidst rising property values.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: 13

• Chapter 25. Local Appraisal
  • Section: 23