Relating to the effect on certain interest and penalties of the deferral or abatement of the collection of ad valorem taxes on certain residence homesteads.
Impact
The bill's changes to existing tax law are expected to impact how interest and penalties accrue on delinquent taxes during deferral periods. By allowing homeowners to defer their property tax payments without incurring additional penalties, HB2399 aims to ease the financial burden on residents facing economic difficulties. The provisions also preserve accrued interest and penalties prior to the filing of the deferral affidavit or judgment, ensuring that homeowners do not lose their rights under the new regulations.
Summary
House Bill 2399 addresses the deferral or abatement of ad valorem tax collections on certain residence homesteads in Texas. The bill modifies sections of the Tax Code, specifying that during the period when tax collection is deferred or abated, a tax lien remains on the property, and interest continues to accrue at a reduced annual rate of eight percent. This rate, which replaces the normal rate outlined in Section 33.01, is designed to provide relief for homeowners who are temporarily unable to pay their taxes due to financial hardships.
Contention
There may be key points of contention regarding the effects of HB2399 on local tax revenue and the implications for state funding. Critics might argue that allowing deferrals could lead to a backlog of unpaid taxes that ultimately affect local services reliant on tax revenues. Conversely, supporters are likely to emphasize the necessity of these measures in providing financial relief to homeowners struggling to maintain their residences. The balance between local revenue needs and consumer protection remains a central debate in discussions around this legislation.
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 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 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 duty of a school district to enter into an ad valorem tax abatement agreement under the Property Redevelopment and Tax Abatement Act for certain property.
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 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, or who utilize the property tax deferral program in section 33.06, Tax Code.