Relating to the authority of the governing body of a taxing unit to adopt a local option residence homestead exemption from ad valorem taxation of not less than $5,000 or more than $30,000.
Impact
The bill's passage could have significant implications for property owners in Texas, as it provides local governments with the authority to set specific exemptions that cater to their communities. The amendments make clear that even if a percentage exemption is set, if it results in an amount less than $5,000 for a given property, the property owner will still receive the minimum exemption of $5,000. This flexibility could enhance affordability for homeowners facing rising property values and taxes, potentially influencing residential stability within the state.
Summary
House Bill 637 proposes amendments to the Texas Tax Code, allowing the governing bodies of taxing units to adopt a local option residence homestead exemption. This exemption can range from a minimum of $5,000 to a maximum of $30,000, depending on the decision made by the local governing body. The proposed legislation emphasizes the need for the exemption to be formally adopted before July 1 of the respective tax year to take effect, thereby standardizing when such exemptions may be implemented across different taxing units within the state.
Contention
Points of contention regarding the bill appear to revolve around concerns about the equitable distribution of tax relief. Critics may argue that the ability for local governments to set varying levels of exemptions could lead to disparities across different areas, favoring some communities over others. Additionally, the requirement for local governing bodies to adopt these exemptions could create administrative challenges and necessitate public awareness efforts to ensure that property owners understand their potential benefits under the new law. If passed, this legislation would also depend on the approval of a constitutional amendment proposed by the 81st Legislature, which adds another layer of complexity to its future implementation.
Enabling for
Proposing a constitutional amendment authorizing the governing body of a political subdivision to adopt a local option residence homestead exemption from ad valorem taxation of not less than $5,000 or more than $30,000.
Relating to the authority of the governing body of a taxing unit other than a school district to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead and to the authority of the governing body of any taxing unit that has adopted an exemption from ad valorem taxation of a percentage of the appraised value of an individual's residence homestead to reduce the amount of or repeal the exemption.
Relating to the authority of the governing body of a taxing unit to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead.
Relating to an exemption from ad valorem taxation by a taxing unit other than a school district of a portion of the appraised value of a residence homestead based on the average appraised value in the preceding tax year of all qualified residence homesteads located in the same county.
Relating to an exemption from ad valorem taxation by a taxing unit located wholly or partly in a populous county of a specified dollar amount, or a greater dollar amount specified by the governing body of the taxing unit, of the appraised value of a residence homestead.
Relating to an exemption from ad valorem taxation of a portion of the 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.
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 the authority of the governing body of a taxing unit to adopt a local option residence homestead exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead.
Relating to the authority of the governing body of a taxing unit to adopt a local option residence homestead exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead.
Relating to a local option election in a county to set a limit on the maximum appraised value of a residence homestead for ad valorem tax purposes of less than 110 percent but not less than 103 percent of the appraised value of the property for the preceding tax year.
Relating to the maximum amount of the local option residence homestead exemption from ad valorem taxation by a school district and the effect of such exemptions on the provision of funding under the foundation school program.
Relating to a local option exemption from ad valorem taxation by a school district of all or part of the appraised value of the residence homesteads of certain individuals who are employed by the district.
Relating to a local option exemption from ad valorem taxation by a taxing unit of all or part of the appraised value of the residence homestead of a peace officer employed by the taxing unit.