Relating to a credit against ad valorem taxes imposed on certain real property used to provide housing to certain persons with disabilities.
Impact
If enacted, HB2901 would significantly impact the taxation landscape for properties designated to support those with disabilities. Property owners would have the opportunity to lower their tax liabilities through this credit, potentially enhancing the viability of group homes that may struggle with operational expenses. The implementation of this tax credit could lead to an increase in such supportive housing options across the state, thereby promoting greater inclusivity and community support for individuals with disabilities.
Summary
House Bill 2901 proposes an amendment to the Texas Tax Code which introduces a credit against ad valorem taxes for certain real properties used to provide housing for individuals with disabilities. Specifically, the bill targets facilities such as group homes and intermediate care facilities that primarily serve persons with developmental, physical, or intellectual disabilities. By enabling property owners of such facilities to receive tax credits based on their operational costs, the bill aims to alleviate some of the financial burdens associated with providing necessary care and support for these individuals.
Sentiment
General sentiment regarding HB2901 appears to be supportive, particularly among advocacy groups for individuals with disabilities and their families. Proponents argue that the bill is a positive step toward enhancing housing options for vulnerable populations who often face significant obstacles. On the opposing side, some fiscal conservatives might view any expansion of tax credits cautiously, potentially raising concerns about the long-term implications for state tax revenue.
Contention
Notable points of contention around HB2901 may arise from its potential fiscal impact on local governments, which depend on property taxes as a primary revenue source. Critics might argue that providing credits could lead to decreased funding for local services, which could be detrimental to other public needs. Additionally, the bill makes the effectiveness contingent on the approval of a constitutional amendment, which might add an element of uncertainty and debate about the overall feasibility and sustainability of such tax credits.
Enabling for
Proposing a constitutional amendment authorizing the legislature to provide for a credit against ad valorem taxes imposed on qualifying real property used to provide housing to persons with disabilities.
Relating to a one-time credit against the ad valorem taxes imposed by a taxing unit on the residence homestead of a first-time home buyer and to the effect of the credit on the determination of the taxable value of a school district.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to a credit against the ad valorem taxes imposed on property owned by a person who makes a donation to the state for the purpose of border security and reimbursement to taxing units for the revenue loss incurred as a result of the credit.
Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.