Texas House Bill HB2770

Texas 2019 - 86th Regular

Caption

Relating to the payment in installments of ad valorem taxes on a residence homestead.

Impact

The introduction of HB 2770 represents a significant shift in the approach to property tax payments in Texas. By enabling installment payments for a more extended period, the bill provides individuals facing economic challenges with a structured way to manage their taxes, thereby potentially increasing compliance rates. This could lead to higher overall tax revenues as more individuals are likely to pay their taxes on time through this new installment framework. The alterations apply to ad valorem taxes for tax years commencing after the bill's effective date, suggesting an immediate impact on forthcoming tax periods.

Summary

House Bill 2770 focuses on the modification of the payment structure for ad valorem taxes specifically related to residence homesteads. The bill allows individuals who are either disabled or aged 65 and above, as well as disabled veterans or their surviving spouses, to pay their property taxes in ten equal installments without incurring penalties or interest, provided they adhere to specific payment deadlines. This flexibility in tax payments is aimed at easing the financial burden on vulnerable populations, allowing them better management of their tax obligations.

Contention

While the bill is generally perceived as beneficial for its target group, it may also face criticisms regarding its implications on state revenues and tax collection processes. Opponents may argue that providing such an extended payment period could delay revenue inflows that local governments rely on for funding essential services. Furthermore, there could be concerns regarding the administrative burden placed on local tax authorities to manage the installment payment process effectively. However, supporters would likely counter these points by emphasizing the long-term benefits of assisting marginalized groups in fulfilling their tax obligations.