Texas House Bill HB820

Texas 2017 - 85th Regular

Caption

Relating to a local option exemption from ad valorem taxation by a county of a portion of the value of the residence homestead of a physician who provides health care services for which the physician agrees not to seek payment from any source, including the Medicaid program or otherwise from this state or the federal government, to indigent residents of the county.

Impact

The bill has significant implications for state tax laws, particularly by allowing counties to adopt exemptions that could promote access to healthcare for lower-income populations. Since the exemption is contingent upon specific service provisions to qualifying county residents, it is expected to incentivize healthcare professionals to provide more charitable care. At the same time, the measure could lead to fiscal challenges for counties as they balance the potential loss of tax revenue against the community health benefits of increased access to care for indigent populations.

Summary

House Bill 820 introduces a local option exemption from ad valorem taxation for counties, specifically aimed at licensed physicians who provide healthcare services to indigent residents. Under this bill, physicians can receive an exemption of up to 50% on the appraised value of their residence homestead if they meet certain criteria, primarily that they do not seek payment for their services from any source, including government programs such as Medicaid. This initiative aims to encourage physicians to serve low-income patients by alleviating some of their financial burdens through property tax reductions.

Contention

Notable points of contention surrounding HB 820 may stem from concerns regarding the adequacy of healthcare service provision to qualifying residents and the administrative burden placed on county governments to manage and verify compliance with the exemption criteria. Some lawmakers may argue that while the bill aims to serve low-income individuals and families, it could inadvertently create disparities in tax funding for local services if not thoroughly monitored. Additionally, opponents might raise questions about the implications for counties that struggle with budget constraints already and the potential long-term effects of diminishing revenue streams from property taxes.