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 is significant for homeowners facing difficulties in managing their ad valorem tax payments, allowing them to defer or abate collections without accruing high interest rates. Under this legislation, penalties for taxes not paid during the deferral or abatement period are also suspended. This could provide substantial relief to individuals who may struggle to meet traditional tax obligations, potentially alleviating financial strain during tough economic times, such as job loss or reduced income.
Summary
House Bill 2367 seeks to modify the rate at which interest accrues during the deferral or abatement of ad valorem taxes on certain residence homesteads. Specifically, the bill amends Sections 33.06(d) and 33.065(g) of the Texas Tax Code to set the interest rate during such periods to the five-year Constant Maturity Treasury Rate, rather than the previous fixed rate of eight percent. This adjustment aims to align the interest accrual more closely with current economic conditions, reflecting a more favorable rate for property owners undergoing tax deferrals or abatements.
Contention
While proponents of HB2367 argue that it benefits homeowners by reducing financial burdens, critics may raise concerns about its impact on local government revenues from property taxes. Lower interest accrual could result in reduced income for municipalities that rely on timely tax contributions, thereby complicating budget plans. Discussions surrounding the bill could also delve into broader implications for state taxation policies and fiscal responsibility, raising further debates on how best to balance taxpayer relief with necessary funding for public 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 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 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.
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 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 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.