Relating to the determination of the appraised value of a residence homestead for ad valorem taxation.
Impact
If enacted, SB276 will directly impact the way residence homesteads are valued for tax purposes, which could result in reduced tax burdens for many homeowners. It introduces a mechanism where appraisal offices are restricted in how much they can increase a residence's appraised value from one year to the next. This aligns with the interests of taxpayers who may feel overwhelmed by sudden spikes in property taxes due to fluctuating market values. The provisions that call for a reappraisal at the owner’s request add a layer of fairness and responsiveness to the appraisal process.
Summary
Senate Bill 276 (SB276) proposes significant amendments to the Tax Code of Texas regarding the appraisal of residence homesteads for ad valorem taxation. The bill specifically addresses how the appraised value of a residence can be determined, aiming to limit appraisal increases to a specified maximum. The adjustments outlined in the bill aim to enhance predictability in property taxes for homeowners by capping the increase of the appraised value based on the previous year's value and allowing for a reappraisal under certain conditions.
Conclusion
Overall, SB276 reflects ongoing conversations around property taxation in Texas and the balance between equitable taxation and sufficient funding for public services. Its passage could signify a shift toward more homeowner-friendly policies while also raising concerns about the financial sustainability of local governments.
Contention
Notably, the bill may face contention related to its implications on local government revenue structures. Opponents could argue that limiting the ability to increase appraisal values may hinder local governments' capacity to fund essential services, which are often reliant on property tax revenues. Proponents, on the other hand, are likely to advocate that the bill protects homeowners from unpredictable tax increases, which could displace long-time residents and disproportionately affect lower-income families.
Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.
Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.
Relating to the authority of the governing body of a taxing unit to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead.
Relating to a limitation on increases in the appraised value for ad valorem tax purposes of the residence homesteads of military veterans, individuals who are disabled or 65 years of age or older, and their surviving spouses.
Relating to a limitation on the total amount of ad valorem taxes that may be imposed by a taxing unit on the residence homestead of an eligible person who is a member of a reserve component of the United States armed forces and is ordered to active military duty.
Relating to a freeze on the total amount of ad valorem taxes that may be imposed by a taxing unit on the residence homestead of an eligible person who is a member of a reserve component of the United States armed forces and is ordered to active military duty.
Relating to the establishment of a limitation on the total amount of ad valorem taxes that a county may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Amends Fiscal Year 2024 annual appropriations act to extend ANCHOR Property Tax Relief Program eligibility to homestead owners and tenants who made payments in lieu of taxes.