Texas House Bill HB1037

Texas 2009 - 81st Regular

• Out of House Committee: 5/4/09

Caption

Relating to allowing persons acquiring a new residence homestead to receive an ad valorem tax exemption on the homestead in the year in which the property is acquired.

Impact

The implications of HB1037 on state tax laws are notable, as it is designed to ensure that individuals who buy homes are not penalized in terms of tax liabilities for the entire year due to the timing of their purchase. By aligning the tax exemption eligibility with the date of acquisition, the bill seeks to provide financial relief to new homeowners and encourage property purchases. The adjustments to the calculation of taxes on residence properties aim to facilitate a smoother transition for new homeowners, promoting stability and growth in the housing market.

Summary

House Bill 1037 focuses on property tax regulations in Texas, specifically allowing individuals acquiring a new residence homestead to receive an ad valorem tax exemption for the year in which the property is acquired. This bill aims to amend existing tax code provisions, particularly related to residence homestead exemptions under the Texas Tax Code. The significant change proposed by HB1037 is the provision that allows homeowners who purchase property after January 1 to qualify for exemptions for the portion of that tax year they own the property, creating a more favorable tax environment for new homeowners.

Contention

There are concerns from various stakeholders regarding the potential impacts of HB1037 on local taxing authorities. Critics may argue that this change could complicate revenue predictions for local governments, which depend heavily on property taxes. The bill does not affect the exemptions for older individuals, which may be a point of contention among those advocating for broader property tax reforms. Additionally, as the bill modifies existing calculations for property taxes, it raises questions about the administrative burden on local tax assessors, who must adapt to the new rules in a timely manner.