Texas 2023 - 88th Regular

Texas House Bill HB2397

Filed
2/16/23  
Out of House Committee
5/1/23  
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the eligibility of certain property to continue to qualify for an ad valorem tax exemption or special appraisal following certain changes in ownership.

Impact

The introduction of HB 2397 could lead to more stable property tax obligations for families during distressing times. By preventing appraisal districts from withdrawing tax benefits simply because ownership name changes, the bill acknowledges the emotional burden on surviving spouses and serves to ease their financial responsibilities. This continuity in tax exemptions underscores a broader aim of the bill: to secure the financial relationship between the government and its citizens, especially in sensitive familial contexts. Moreover, it helps to maintain agricultural operations by allowing them to retain their valued tax status amidst ownership changes.

Summary

House Bill 2397 seeks to amend the Texas Tax Code to ensure that certain properties—including residential and agricultural—can maintain their eligibility for ad valorem tax exemptions or special appraisals after significant changes in ownership. The bill specifically addresses situations where ownership transfers to the surviving spouse or child of the former owner, thus allowing these individuals to continue benefitting from the previously granted tax exemptions without the risk of losing them due to a change in name on the title. This provision serves to protect the interests of property owners during profound life changes, such as the death of a spouse.

Sentiment

The sentiment surrounding HB 2397 appears to be largely supportive, particularly among those who recognize the challenges faced by surviving spouses when it comes to inheriting properties. Testimonies during committee meetings highlighted the need for such protections, indicating that stakeholders—like property tax attorneys and advocates—view the bill as a necessary measure. The limited opposition suggests a general consensus on the importance of easing property taxation issues for families at a vulnerable moment, although specifics regarding implementation and potential challenges were not heavily debated.

Contention

While there does not seem to be notable contention directly recorded against HB 2397, the underlying principles of property tax laws and appraisals often engender discussions surrounding fairness, uniformity, and governmental authority. Some may argue that such exceptions risk complicating the property tax framework or opening doors to undue favoritism. However, during committee discussions, these concerns were mostly absent, and the focus remained on the bill's intended goal of providing stability and reassurance to families undergoing ownership transitions.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 11. Taxable Property And Exemptions
    • Section: 43
    • Section: 43
  • Chapter 23. Appraisal Methods And Procedures
    • Section: 54
    • Section: 541
    • Section: 54
    • Section: 541

Companion Bills

No companion bills found.

Similar Bills

No similar bills found.