Relating to the eligibility of property to continue to receive a residence homestead exemption from ad valorem taxation for not more than three years after the property ceases to be the owner's principal residence if the property is being offered for sale.
Impact
If enacted, HB2347 would specifically influence tax regulations related to residential properties, allowing owners to retain certain tax benefits that would otherwise lapse upon ceasing to occupy the property as their main residence. This provision could provide significant financial relief, particularly in fluctuating markets where homes may take longer to sell. Additionally, it preserves affordability for these homeowners by reducing their tax obligations during transitional periods, potentially impacting local government revenue.
Summary
House Bill 2347 amends the Texas Tax Code to permit homeowners to maintain their residence homestead exemption from ad valorem taxation for up to three years after the property is no longer their principal residence, provided the property is actively being offered for sale. This measure aims to alleviate financial burdens on homeowners who are in the process of selling their homes and who may have temporarily moved elsewhere during that time. By allowing for this continued exemption, the bill seeks to support homeowners during transitions and reflects an understanding of the real estate market's challenges.
Sentiment
The sentiment surrounding HB2347 appears to be generally positive among lawmakers focused on housing issues. Proponents view this legislation as a necessary adaptation to the realities of the housing market, recognizing that homeowners can face significant costs and challenges when moving. However, concerns from local governments and tax authorities about loss of revenue could create a point of contention, emphasizing the balance between supporting homeowners and ensuring adequate municipal funding.
Contention
Some points of contention include the potential implications of extended exemptions on local government budgets and services that rely on property tax revenues. Critics may argue that while supporting homeowners is valuable, the bill could lead to reduced financial resources for municipalities, which could impact community services. Therefore, the discussion around HB2347 underscores a fundamental debate between providing necessary tax relief to individuals and maintaining sustainable funding for local governance.
Enabling for
Proposing a constitutional amendment relating to the eligibility of property to continue to receive a residence homestead exemption from ad valorem taxation for not more than three years after the property ceases to be the owner's principal residence if the property is being offered for sale.
Relating to an exemption from ad valorem taxation of 50 percent of the appraised value of the residence homestead of a person who has received a residence homestead exemption on the property for at least the preceding 10 years.
Relating to notice by an appraisal district to an owner of residential property of the owner's potential eligibility for a residence homestead exemption from ad valorem taxation of the property and the manner in which certain owners may apply for the exemption.
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.
Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of residential real property for ad valorem tax purposes to 105 percent or more of the appraised value of the property for the preceding tax year, to exempt from ad valorem taxation the total appraised value of property purchased by an individual for the first tax year the individual qualifies the property as the individual's residence homestead if the property is the individual's first residence homestead and has an appraised value of less than $300,000, and to limit the total amount of ad valorem taxes that a political subdivision may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 25 consecutive tax years.
Relating to the limitation on the total amount of ad valorem taxes that a school district may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 20 consecutive tax years.
Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.