TX
Texas House Bill HB157

Texas 2021 - 87th 2nd C.S.

Texas House Bill HB157

Caption

Relating to the ad valorem taxation of residential real property.

Impact

The bill significantly impacts how property is appraised and taxed, especially for those claiming homestead status. It introduces a specific limitation whereby if an individual maintains their homestead status for 25 consecutive years, taxing units cannot impose taxes that exceed what was imposed during their 25th year. This change could lead to more stable tax obligations for long-term homeowners and prevent drastic increases in property taxes as property values rise.

Summary

House Bill 157 focuses on the ad valorem taxation of residential real property. It amends existing tax code provisions to provide specific exemptions and limitations on property taxes for individuals qualifying their property as their residence homestead for the first time. One notable change includes the exemption of the total appraised value of a residence homestead with an appraisal value less than $300,000 for the first tax year the individual qualifies the property as their residence. This aims to ease the financial burden for new homeowners and lower-income residents seeking to enter the housing market.

Contention

There may be concerns from local governments regarding the financial implications of these tax limitations. Critics might argue that such exemptions could reduce funding for essential services since property taxes are a primary source of revenue for schools and local infrastructures. The bill also stipulates that the chief appraiser must take additional actions to implement these changes, which could introduce complexities in property tax administration and potentially lead to discrepancies in tax collection across different jurisdictions.

Latest HB157 Activity

Companion Bills

TX HJR20

Enabling for Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.

Similar Bills

TX HB132

Relating to the ad valorem taxation of residential real property.

TX HB1566

Relating to the ad valorem taxation of residential real property.

TX HB3757

Relating to the authority of a taxing unit other than a school district, county, municipality, or junior college 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 and to the information required to be included in a tax bill.

TX HB381

Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HB1705

Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HB126

Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HB70

Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HB2008

Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.