Texas House Bill HB155

Texas 2021 - 87th 2nd C.S.

Caption

Relating to the authority of a taxing unit other than a school district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

Impact

The enactment of HB 155 will have substantial implications for state property tax laws, particularly regarding how local taxing units manage tax assessments. Under the new law, if homeowners who qualify for these exemptions experience a rise in property value due to improvements made to their homes, the taxable value can be adjusted. However, the increase in taxes following such improvements must still align with the limitations set forth in this legislation. This balance aims to protect taxpayers from disproportionate tax spikes that could force them out of their residences.

Summary

House Bill 155 aims to authorize taxing units, excluding school districts, to create limits on the amount of ad valorem taxes that can be imposed on the homesteads of individuals who are disabled or elderly, along with their surviving spouses. This legislation is designed to provide property tax relief for these vulnerable populations, ensuring that tax increases do not significantly burden them financially. By allowing local governments to establish tax limitations, the bill seeks to enhance the affordability of housing for elderly and disabled homeowners.

Contention

While many support HB 155 for its intention to safeguard the financial security of the elderly and disabled, critics argue that the bill may reduce necessary funding for local governments. Concerns have been voiced about how local services that rely on tax revenues could be impacted if various taxing units impose stricter limits without sufficient compensating measures. Thus, while the bill aims to help certain populations, it raises discussions about maintaining an adequate financial structure for community services.