Texas House Bill HB341

Texas 2009 - 81st Regular

• Filed: 11/21/08

Caption

Relating to an exemption from ad valorem taxation of a portion of the appraised value of the residence homesteads of military servicemembers who are serving on active duty.

Impact

If enacted, HB341 would reduce the property tax burden on qualifying military families, thereby promoting home ownership and financial stability for these individuals. Furthermore, the legislation is expected to encourage a supportive environment for military personnel by recognizing their contributions to national defense. The tax exemption would apply from the 2009 tax year onward, impacting state and local government revenues, as it provides a direct reduction in property taxes collected from eligible residences.

Summary

House Bill 341 proposes an amendment to the Texas Tax Code to provide an exemption from ad valorem taxation for a portion of the appraised value of residence homesteads owned by military servicemembers serving on active duty. Specifically, the bill allows for a $3,000 exemption applicable to the residence homestead of eligible individuals, including those in the armed forces, Texas National Guard, or any reserve components serving under presidential order. The intent behind the bill is to provide financial relief to military families as they serve the country, acknowledging their sacrifices and the need for affordable housing.

Contention

Despite its intended benefits, the bill may raise concerns regarding the implications for local taxation revenues. Some stakeholders might argue that the exemption could create a disparity in tax burdens among homeowners and could complicate property tax administration by requiring additional measures to confirm eligibility, such as the submission of affidavits and documentation proving active duty status. There may also be concerns regarding the fairness of property tax exemptions for specific groups of citizens, which could lead to discussions about broader reform in taxation policies to ensure equity among all taxpayers.