Texas House Bill HB668

Texas 2009 - 81st Regular

Caption

Relating to increasing the amount of the residence homestead exemption from ad valorem taxation by a school district to $30,000, providing for a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homesteads of the elderly or disabled to reflect the increased exemption amount, and protecting school districts against the resulting loss in local revenue.

Impact

The bill is expected to have significant implications for state law regarding property taxation. By increasing the exemption amount, HB668 intends to protect elderly and disabled homeowners from excessive taxation while maintaining their homesteads. However, the increase may pose challenges for school districts, which will have to navigate the potential loss in local tax revenue as a result of the higher exemptions. To address this, the bill includes provisions to help school districts recover or protect against the revenue loss, allowing them to maintain funding for educational needs.

Summary

House Bill 668 proposes an increase in the residence homestead exemption from ad valorem taxation by school districts from the current limit of $15,000 to $30,000. The bill aims to provide relief to homeowners, particularly benefiting the elderly and disabled by reflecting the increased exemption amount in a reduction of total ad valorem taxes imposed by school districts on their homesteads. It is designed to bolster tax relief for these vulnerable populations, ensuring that their financial burden is eased in terms of property taxes.

Contention

During discussions around HB668, notable points of contention emerged regarding the balance between providing tax relief to individuals and ensuring that school districts can sustain adequate funding. Supporters argue that the bill offers essential financial relief to seniors and the disabled, who may struggle with rising property tax costs. Conversely, opponents expressed concerns over the financial implications for school districts, fearing that the exemptions could hinder their ability to fund necessary educational programs and services.

Implementation

If passed, HB668 would take effect starting from January 1, 2010, coinciding with a proposed constitutional amendment that must be approved by voters to implement the increased exemption. This stipulation underscores the interplay between legislative action and public endorsement, indicating that broader community support is necessary for the bill to achieve its intended goals.