Texas House Bill HB2

Texas 2023 - 88th Regular

• Filed: 3/2/23
• Out of House Committee: 3/24/23
• Voted on by House: 4/14/23

Caption

Relating to providing property tax relief through the public school finance system and property tax appraisal and administration.

Impact

The proposed bill modifies existing tax codes to limit the maximum appraised value of properties and reduce the overall tax rate applied by school districts. Proponents argue that this will help alleviate the financial strain on families and assist in better funding for local public schools. Critics, however, highlight concerns regarding sustainable funding mechanisms, fearing that the reduction in available property tax revenue could lead to shortfalls in school district finances. This bill aims at a dual objective of providing relief while promoting educational funding reform, although how these goals will coexist remains a point of contention.

Summary

House Bill 2, also known as the Property Tax Relief Act, proposes significant changes to property tax assessment and aims to provide substantial tax relief through the public school finance system. The bill includes provisions that reduce taxes for homeowners across the state, thereby addressing the rising financial burden of property taxes and aiming to enhance borrower's capacity to fund their education. With a projected allocation of $12 billion in immediate property tax relief, the legislation is noted to potentially impact over $17 billion in total tax relief when coupled with the overall state budget adjustments.

Sentiment

The sentiment around HB2 is mixed but leans towards optimism among supporters, particularly homeowners and educational advocates who see this as a necessary measure to manage high property taxes and to ensure equitable funding for schools. Many legislators emphasize that Texans deserve to keep more of their income through reduced tax liabilities. Conversely, challenges arise from various stakeholders who worry about the long-term implications on school funding, fearing that the focus on immediate relief may undermine future investments in education.

Contention

Notable points of contention include debates over the effectiveness of the relief measures and concerns regarding the shifts in revenue streams for local school districts. Stakeholders argue about the balance between providing immediate financial relief to taxpayers and ensuring sustained funding for educational institutions. As testimonies reveal, there are varied opinions on whether downward pressure on property tax rates could ultimately lead to compromised school quality and available resources, sparking an ongoing dialogue about fiscal responsibility and educational equity.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 1. General Provisions
  • Section: 12
  • Section: 12
  • Section: 12

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

• Chapter 31. Collections
  • Section: 072
  • Section: 072
  • Section: 072

• Chapter 42. Judicial Review
  • Section: 26

• Chapter 11. Taxable Property And Exemptions
  • Section: 13

• Chapter 26. Assessment
  • Section: 08

Government Code

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

Education Code

• Chapter 48. Foundation School Program
  • Section: 2555
  • Section: 2555