Texas House Bill HB866

Texas 2009 - 81st Regular

Caption

Relating to a study regarding ad valorem tax relief through the use of a circuit breaker program.

Impact

The bill mandates the Texas comptroller to conduct a comprehensive study with the assistance of an advisory committee. This committee will include representatives from various sectors, such as school districts, real estate, and organizations focused on housing issues, ensuring that diverse perspectives are considered. The analysis will involve exploring different methods for implementing such a program, the eligibility criteria based on income levels, and the potential economic implications for both property owners and the state. This could lead to significant changes in how property taxes are assessed and provide a framework for assisting those who struggle to meet tax obligations.

Summary

House Bill 866 focuses on the creation of a study aimed at exploring the implementation of a circuit breaker program for ad valorem tax relief. This program would provide a mechanism to limit the amount of property taxes imposed on residence homesteads based on the owner's annual income. By establishing a circuit breaker system, the bill intends to alleviate the financial burden on homeowners, particularly those in low to moderate-income brackets. The findings from this study are anticipated to guide future legislative actions related to tax relief provisions in Texas.

Contention

While prompting a positive discourse about tax relief, HB 866 may encounter challenges regarding the potential financial implications for local taxing units and the state budget. The anticipated reduction in ad valorem tax collections could raise concerns among local governments about funding essential services. Moreover, discussions may arise about fairness in terms of tax burden distribution and whether a circuit breaker program effectively addresses the needs of all citizens, particularly those not classified as low or moderate-income. As debates continue, the effectiveness of the circuit breaker model in achieving its intended benefits will be scrutinized.