Texas Senate Bill SB361

Texas 2021 - 87th Regular

Caption

Relating to the continuation of a limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes if the property is acquired by and qualifies as the homestead of an heir of the owner or the owner's spouse or surviving spouse.

Impact

The impact of SB361 is significant in the context of property tax regulations, as it proposes to amend existing provisions in Texas Tax Code regarding the appraisal process for residence homesteads. Specifically, it stipulates that if an heir qualifies for an exemption under Section 11.13, the limitation on appraised value increases will remain in effect. This change aims to protect families from potential financial strain due to rising property taxes, which could otherwise force them to sell inherited properties that have been in the family for generations. The anticipated effect of this bill would assist in maintaining wealth within families and ensuring housing stability.

Summary

Senate Bill 361 (SB361) aims to continue a limitation on the increases in the appraised value of residence homesteads for ad valorem tax purposes, particularly when such property is acquired by an heir of the original owner or the owner’s spouse. The legislation is designed to ensure that the tax burden does not escalate unexpectedly upon the transfer of property within families, which can occur as a result of property appraisals for tax purposes during ownership changes. This bill is particularly important for ensuring property remains affordable for heirs, encouraging families to maintain long-term ownership of homes.

Contention

There are potential points of contention surrounding SB361. Critics may argue that while the bill aims to protect heirs from increases in property taxes, it could unintentionally provide tax benefits that disproportionately favor wealthier families or those possessing valuable inherited properties. Concerns over equity in tax regulations may arise, prompting discussions about whether similar protections should extend to families of varying economic backgrounds or whether additional measures should be implemented to ensure a more balanced tax system. Furthermore, the potential need for a constitutional amendment to validate the continuation of this tax limitation might raise concerns among lawmakers and voters regarding the implications of altering tax structures in Texas.