Texas House Bill HB3130

Texas 2025 - 89th Regular

• Filed: 2/20/25

Caption

Relating to a limitation on increases in the appraised value for ad valorem tax purposes of residential real property leased to an elderly person.

Impact

The implementation of HB 3130 is anticipated to significantly impact the Texas property tax system, particularly for senior citizens seeking rental housing. By capping appraisal values for residential properties leased under certain conditions, the bill aims to alleviate financial pressure on elderly renters, thereby fostering greater affordability in the housing market. This measure could help stabilize living arrangements for many elderly individuals who might otherwise face steep increases in housing costs due to rising property values.

Summary

House Bill 3130 introduces provisions aimed at limiting the increases in the appraised value of residential real properties leased to elderly individuals aged 65 or older. Specifically, the bill seeks to modify the Tax Code to ensure that the appraisal of properties leased to qualified elderly tenants is capped, ensuring that rental conditions remain affordable and sustainable for this demographic. The bill stipulates that properties must not be let at rates exceeding the fair market rent established by the United States Department of Housing and Urban Development, thereby affording further protection to tenants in this age group.

Contention

Nevertheless, the bill may encounter points of contention amongst stakeholders, particularly among property owners who could view this as an encroachment on their rights to set rents commensurately with market conditions. Critics might argue that such limitations could discourage investments in property maintenance and development targeted at elderly tenants. Other opponents might express concern that capping appraised values could lead to broader implications for property taxes, potentially straining local tax revenues if a significant cohort of properties falls under these new regulations.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 1. General Provisions
  • Section: 12

• Chapter 23. Appraisal Methods And Procedures
  • Section: New Section

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: 302