Texas House Bill HB1696

Texas 2017 - 85th Regular

Caption

Relating to the exemption from ad valorem taxation of a percentage of the assessed value of a property owned by certain disabled veterans and the amount of the exemption for the surviving spouses and children of certain disabled veterans.

Impact

If implemented, HB1696 would alter the existing tax structure for disabled veterans in Texas, providing them and their families with significant financial relief. The bill extends benefits not only to eligible veterans but also to their surviving spouses and unmarried children under 18 years, providing a portion of their parent’s tax exemption. This creates a more supportive environment for families of veterans, recognizing the sacrifices made by service members and their dependents.

Summary

House Bill 1696 proposes significant changes to the ad valorem taxation of properties owned by certain disabled veterans. The bill outlines a tiered exemption system based on the disability rating of the veteran. For example, veterans with a disability rating of at least 10% but less than 30% would receive a property tax exemption of 7.91%, while those with a rating of 70% or more would benefit from an exemption of 18.98%. This aims to alleviate the financial burden on veterans, allowing them to retain more resources for their needs after service.

Contention

Despite its intent to support disabled veterans, HB1696 may face scrutiny regarding the funding implications for local governments reliant on property tax revenues. Opponents might argue that increased exemptions could lead to decreased funding for essential local services, such as education and public safety. Additionally, there may be debates surrounding the equity of these tax benefits and whether they adequately support veterans of varying circumstances, particularly those with lower disability ratings which receive less relief.

Implementation

The provisions of the bill would apply to ad valorem taxes imposed for tax years beginning on or after the effective date of the act, contingent upon the approval of a related constitutional amendment by voters. This indicates a careful legislative approach, ensuring public backing before enacting tax relief measures for a specific demographic, thereby balancing fiscal responsibility with the obligation to support veterans.