Relating to the rate at which interest accrues in connection with the deferral or abatement of the collection of ad valorem taxes on the residence homestead of an elderly or disabled person.
Impact
By reducing the interest rate associated with tax deferrals, HB442 is positioned to have a positive impact on elderly and disabled homeowners across Texas. The proposed changes could help these individuals manage their housing costs more effectively, allowing them to remain in their homes longer. The bill specifically addresses concerns regarding the accumulation of interest that can lead to higher eventual tax liabilities, reflecting an understanding of the financial challenges faced by these groups.
Summary
House Bill 442 aims to amend the Tax Code regarding the interest rates applied on ad valorem tax deferral or abatement for residences owned by elderly or disabled individuals. The bill proposes to decrease the interest rate that accrues during the deferral or abatement period from eight percent to five percent, a move that could significantly alleviate the financial burden on these vulnerable populations. This legislative change seeks to ensure that elderly or disabled homeowners can retain their residences without the fear of escalating tax obligations during periods of financial hardship.
Contention
While the bill seems to have a positive intent, it may prompt discussions regarding budgetary implications for local governments that rely on ad valorem taxes as a key revenue source. Some stakeholders might question whether the reduced interest rate could lead to increased financial strain on local tax systems or create inequities in tax burdens among different demographics. Furthermore, there may be debates around the effectiveness of such measures in providing sustained relief, as well as the long-term impacts on housing stability for the elderly and disabled populations.
Relating to the rate at which interest accrues in connection with the deferral or abatement of the collection of ad valorem taxes on certain residence homesteads.
Relating to penalty and interest incurred on a delinquent ad valorem tax imposed on the residence homestead of an individual who is elderly or disabled.
Relating to the determination and reporting of the number of residence homesteads of elderly or disabled persons that are subject to the limitation on the total amount of ad valorem taxes that may be imposed on the properties by school districts and of the number of residence homesteads of certain property owners for which the owner deferred collection of a tax, abated a suit to collect a delinquent tax, or abated a sale to foreclose a tax lien.
Relating to the determination and reporting of the number of residence homesteads of elderly or disabled persons that are subject to the limitation on the total amount of ad valorem taxes that may be imposed on the properties by school districts, or who utilize the property tax deferral program in section 33.06, Tax Code.
Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.
Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.
Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.
Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.