Relating to the payment in installments of ad valorem taxes on certain property owned by a business entity and located in a disaster area and to the ad valorem taxation of a residence homestead rendered uninhabitable or unusable by a casualty or by wind or water damage.
Impact
This legislation will significantly impact tax laws related to property taxation in Texas. It enables property owners to manage their financial burdens during recovery from disasters, providing a more accessible path for maintaining tax exemptions while rebuilding. This is particularly beneficial for families and businesses struggling after a disaster, potentially leading to more stable property ownership and support for community recovery efforts.
Summary
House Bill 1257 addresses the payment of ad valorem taxes for properties owned by business entities in disaster areas and the taxation of residence homesteads rendered unusable due to casualties or wind/water damage. Specifically, it allows business entities to pay their taxes in installments if their properties are located in officially declared disaster areas. Moreover, it proposes continuance of residence homestead exemptions for homeowners who are constructing replacement structures after their primary homes have been rendered uninhabitable due to such disasters.
Contention
Some key points of contention surrounding HB 1257 involve concerns about unintended consequences of the tax exemptions, such as the potential for tax revenue shortfalls for local governments. Opponents might argue that while the bill provides immediate relief, it could promote a lack of accountability in managing properties and encourage businesses to forgo timely repairs in favor of prolonged tax breaks. Proponents counter that the bill is tailored to support recovery efforts and that the benefits outweigh the possible revenue losses for municipalities.
Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage as a new improvement for ad valorem tax purposes.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to ad valorem tax relief for an owner of certain property, including a residence homestead that is rendered uninhabitable or unusable by a casualty or by wind or water damage, and to a restriction on the authority to bring an action to remove a house that is partially located on a public beach as a result of a meteorological event.
Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage as a new improvement for ad valorem tax purposes.
Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage as a new improvement for ad valorem tax purposes.
Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage as a new improvement for ad valorem tax purposes.