Texas House Bill HB958

Texas 2015 - 84th Regular

Caption

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of an elderly or disabled person to reflect the increased exemption amount, and the protection of school districts against the resulting loss in local revenue.

Impact

If enacted, HB 958 would significantly affect local tax revenues for school districts. As the bill provides for adjustments to account for these revenue losses, school districts would be entitled to additional state aid to offset any deficits caused by the increased exemption amounts. This measure is designed to protect local revenue streams while promoting fiscal responsibility and accountability among educational institutions. The adjustments will ensure that while homeowners may face reduced taxes, school districts can still access necessary funding to provide quality education.

Summary

House Bill 958 proposes an increase in the residence homestead exemption from ad valorem taxation by school districts. Specifically, it aims to raise the exemption amount from $15,000 to $30,000 for homeowners' primary residences. Moreover, the bill seeks to adjust the limitations on ad valorem taxes imposed on the homesteads of elderly or disabled individuals, ensuring that these groups receive proportional relief corresponding to the increased exemption. The intention behind the bill is to alleviate the tax burden for vulnerable populations while maintaining equitable school funding for districts affected by this change.

Contention

The bill has raised some points of contention among legislators. Proponents argue that the increase in the homestead exemption is a warranted response to rising property values and tax burdens faced by residents, particularly for the elderly and disabled. They believe that this measure is essential for providing financial relief and support for these vulnerable groups. However, opponents caution that the shift in revenue could create inconsistencies in funding across school districts, potentially leading to disparities in educational resources provided to students. As a result, some legislators emphasize the need to thoroughly evaluate the long-term implications of the increased exemptions on public education funding.