Texas House Bill HB1798

Texas 2021 - 87th Regular

Caption

Relating to the effect of a disaster declaration on the ad valorem tax rate of a taxing unit other than a school district and the appraised value of certain property in the taxing unit.

Impact

The bill is expected to provide financial relief to property owners in disaster-affected areas by capping growth in property appraisals and corresponding tax liabilities. Under the proposed amendments, appraisal districts may be restricted from significantly raising the appraised values of properties that were affected, which is particularly beneficial following events such as hurricanes, floods, or wildfires. The intent is to allow residents and businesses adequate time to recover from disasters without the added burden of increasing tax obligations related to inflated property valuations.

Summary

House Bill 1798 outlines specific amendments to the Texas Tax Code relating to the effects of disaster declarations on property taxation. It introduces mechanisms that enable temporary limitations on the appraised values of real estate located within areas affected by disaster. Specifically, properties that find themselves in declared disaster zones may not see their appraised values increase beyond predetermined limits, allowing relief to property owners during turbulent times. This bill's provisions primarily target taxing units that are not school districts, aiming to stabilize property tax rates when communities face difficulties due to disasters.

Contention

While the bill aims to assist communities severely impacted by disasters, it may also lead to debates on fiscal responsibility and equity in tax funding for local services. Critics may argue that limiting appraisal increases could adversely impact the financial resources available to taxing units, potentially reducing services or infrastructure improvements in the long term. Additional points of contention likely arise around defining the threshold for disaster areas and the overall effectiveness of temporary limits versus the ongoing need for adequate funding for public services.