TX
Texas House Bill HB1104

Texas 2011 - 82nd Regular

Texas House Bill HB1104

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the phasing out of ad valorem taxes on the residence homesteads of elderly persons by 2021.

Impact

The passage of HB 1104 is expected to have a profound impact on state tax revenue, particularly within school districts that rely on property tax for funding. As local governments lose a source of revenue from property taxes on homesteads owned by elderly individuals, they may need to seek alternative funding sources or adjust budgets accordingly. The exemptions are set to expire after 2021, but the implications of such a tax structure could set a precedent for future tax legislation and considerations for support programs for the elderly.

Summary

House Bill 1104 aims to phase out ad valorem taxes on the residence homesteads of elderly individuals and disabled persons by 2021. Specifically, this legislation proposes gradual tax exemptions starting from 20% in 2017, increasing by 20% each year until reaching a full exemption of 100% by 2020, resulting in significant financial relief for qualifying homeowners. The bill not only seeks to alleviate the tax burden on the elderly but also extends these benefits to surviving spouses under certain conditions, ensuring continuity in property ownership without the fear of increased taxation due to disability or age.

Sentiment

The general sentiment surrounding HB 1104 is largely supportive among advocates for the elderly, who view it as a necessary measure to protect vulnerable populations from rising property taxes in a time of fixed incomes. Conversely, some opponents argue that such tax exemptions could lead to concerns about funding for public services, particularly education, as they rely heavily on property tax income. The debate around HB 1104 emphasizes the balance between providing necessary support for the elderly while maintaining adequate funding for essential public services.

Contention

A noteworthy point of contention in discussions of HB 1104 centers on its potential impact on public school funding. Critics of the bill speculate that phasing out these taxes could create a funding gap for local school districts, necessitating adjustments that may negatively affect educational resources. Proponents counter that the bill will ultimately benefit communities by allowing elderly individuals to remain in their homes without the fear of losing property due to unaffordable taxes. These competing perspectives underscore a broader debate in tax policy regarding the needs of individuals versus the financial health of state and local governments.

Latest HB1104 Activity

Companion Bills

TX HJR83

Enabling for Proposing a constitutional amendment to phase out ad valorem taxes on the residence homesteads of elderly persons by 2021.

Similar Bills

TX HB1032

Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HB322

Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HB2008

Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HB360

Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HB2268

Relating to a temporary increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, a temporary reduction in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect the increased exemption amount, and a temporary protection of school districts against the resulting temporary loss in local revenue.

TX HB1679

Relating to an exemption from ad valorem taxation by a school district of a dollar amount or a percentage, whichever is greater, of the appraised value of a residence homestead, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of an elderly or disabled person to reflect any increase in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX SB1328

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district and the increase of the exemption amount in subsequent years to reflect inflation in homestead values, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of a disabled or elderly person to reflect the increased exemption amounts, and the protection of school districts against the resulting loss in local revenue.

TX SB1391

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district and the increase of the exemption amount in subsequent years to reflect inflation in homestead values, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of a disabled or elderly person to reflect the increased exemption amounts, and the protection of school districts against the resulting loss in local revenue.