Texas House Bill HB650

Texas 2021 - 87th Regular

Caption

Relating to an exemption from ad valorem taxation by certain taxing units of a portion of the appraised value of the residence homestead of the parent or guardian of a person who is disabled and who resides with the parent or guardian.

Impact

If enacted, HB 650 will have implications for local taxing entities and how they calculate property taxes for eligible individuals. The bill allows for the possibility of an additional exemption, depending on local governance decisions, which could be adopted at the discretion of local tax authorities or through a public vote. This provision is expected to empower local governing bodies by enabling them to respond to community needs regarding tax relief for families with disabled children living at home.

Summary

House Bill 650 proposes an exemption from ad valorem taxation for a portion of the appraised value of the residence homestead of parents or guardians caring for persons with disabilities. This legislative action aims to alleviate the financial burden on families who provide support to disabled individuals by reducing their property tax obligations. The bill amends the Tax Code to make it clear that individuals who are disabled, or who are 65 years of age or older, can receive an exemption of $10,000 from the appraised value of their residence homestead for school district taxes.

Contention

As with many tax-related proposals, there are points of contention surrounding HB 650. Supporters argue that it is a necessary step to support families who often face significant additional costs associated with caring for disabled individuals. However, fiscal conservatives may raise concerns about the potential decrease in tax revenues for local jurisdictions, arguing that such exemptions could impact the funding available for public services. The requirement for local elections to approve additional tax relief measures may also stir debates regarding the appropriateness of asking voters to authorize such exemptions.