Texas Senate Bill SB32

Texas 2021 - 87th 2nd C.S.

Caption

Relating to the calculation of a limitation on the total amount of ad valorem taxes that may be imposed by certain taxing units on the residence homestead of an individual who is elderly or disabled.

Impact

The impact of SB32 is significant for low-income and elderly homeowners in Texas, as it establishes a safeguard against rising property taxes that could otherwise jeopardize their financial security and housing stability. By locking in the tax amount from the initial exemption year, the bill aims to alleviate the financial burden on individuals who may struggle with increasing property taxes due to fixed or declining incomes. The bill applies to ad valorem taxes imposed in tax years starting on or after the effective date and introduces restrictions that could steer local government taxing policies toward more consideration for the financial well-being of these residents.

Summary

SB32 proposes amendments to the Texas Tax Code concerning the ad valorem taxes imposed by certain taxing units on the residence homesteads of individuals who are elderly or disabled. The bill aims to limit the total amount of taxes that can be levied on such residences, establishing a framework that prevents tax increases beyond a specified point once an individual qualifies for the exemption. Specifically, the bill stipulates that school districts cannot increase the amount of taxes imposed beyond what was charged in the first tax year the exemption was granted, thus providing financial relief for vulnerable populations.

Contention

While the bill is likely to garner support from those advocating for property tax relief for seniors and the disabled, it may face opposition from local governments and taxation authorities concerned about the limitations it places on their revenue. Critics might argue that the inability to adjust tax rates could hinder local governments' ability to fund essential services, especially in areas with rising costs or declining tax bases. The debate around SB32 will likely pivot on the balance between providing necessary support for vulnerable citizens and preserving the financial flexibility of local governmental entities.