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.
Impact
The bill specifically addresses the financial burden of ad valorem taxes on homeowners seeking deferral or abatement options. By capping the interest rate applied to such deferrals, HB53 aims to make it more manageable for homeowners to retain their properties without the added pressure of growing interest. It is expected that this bill will ease some financial stresses on residents and potentially help prevent foreclosures related to tax difficulties during tough economic times.
Summary
House Bill 53 aims to modify the Tax Code in Texas by adjusting the interest rate that accrues during the deferral or abatement of ad valorem taxes on certain residence homesteads. Under the current law, a tax lien remains on the property, and interest continues to accumulate. The proposed amendment sets the annual interest rate to the lower of the five-year Constant Maturity Treasury Rate or five percent during the deferral or abatement period. This change reflects a significant alteration from the existing rate regulations, aiming to provide potential tax relief for property owners during deferred payments.
Contention
Some potential points of contention surrounding HB53 may stem from varying opinions about tax deferral policies. Supporters of the bill might argue that the proposed interest rate provides necessary relief for homeowners, particularly during economic downturns. On the other hand, opponents may raise concerns about the implications for local governments, emphasizing that reduced interest accrual could impact the revenue flow from property taxes, which many municipalities rely on for services. This aspect could lead to debates about the balance between providing relief to residents and ensuring adequate funding for local services.
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 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 authority of the owner of a residence homestead to receive a discount for making an early payment of the ad valorem taxes on the homestead.
Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.
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 limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.
Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.