Texas Senate Bill SB1928

Texas 2009 - 81st Regular

Caption

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

Impact

The potential impacts of the proposed circuit breaker program could be significant in altering how property taxes affect different income groups. By linking tax liabilities directly to a homeowner's income, the program aims to relieve financial pressure on lower-income households. The study will encompass an analysis of various designs for the program, estimating the benefits for homeowners across different income brackets, alongside the overall economic effects such as home ownership rates and local market health.

Summary

SB1928 proposes a study on the implementation of an ad valorem tax relief circuit breaker program aimed at providing limited tax burdens on residential homesteads based on their owners' income levels. The bill is intended to address the financial strains that property taxes can impose on low and moderate-income households. Under this proposed framework, the state's comptroller will lead the study and establish an advisory committee comprising various stakeholders such as school districts, real estate agents, and financial agencies. This committee will assist in examining various implementations of the program including rebates or tax credits.

Conclusion

Overall, SB1928 signifies a legislative effort to explore tax relief mechanisms aimed at addressing socio-economic disparities. The outcome of the proposed study will be crucial to shaping future tax policy decisions in Texas, potentially leading to reforms that influence affordability in the housing sector.

Contention

The discussion surrounding SB1928 may face points of contention regarding its feasibility and the implications for tax revenue. Critics might raise concerns about the possible decrease in revenues for local governments and schools, which heavily rely on property taxes. Supporters would likely argue that the circuit breaker could foster greater economic stability by enabling low and moderate-income families to retain their homes, thereby contributing to sustained community development.