Relating to collection costs that may be imposed in connection with certain delinquent ad valorem taxes owed by disabled veterans.
This legislation aims to enforce a more lenient collection policy regarding property taxes for disabled veterans, recognizing their unique status and the financial challenges they often face. Under the proposed amendments, the penalties are structured such that if taxes are delinquent beyond a certain period, the penalty cannot exceed 20% based on the length of delinquency. This shift is a significant relief for veterans, reducing the financial burden associated with tax penalties which can escalate quickly and may lead to further financial distress.
House Bill 2990 seeks to amend the Texas Tax Code concerning the collection of delinquent ad valorem taxes owed by disabled veterans. The bill introduces provisions to limit the additional penalties that can be imposed on disabled veterans for delinquent taxes, specifically for their residence homesteads. It specifies that if delinquent taxes remain unpaid, the penalties will be capped at a percentage of the delinquent taxes owed, thus providing some financial reprieve for disabled veterans who may be unable to pay their property taxes on time due to their circumstances.
One notable point of contention surrounding HB2990 could arise from the implications it has on local taxing units and appraisal districts. While the bill aims to protect disabled veterans, it may also lead to concerns about the financial viability of these taxing units if they are unable to collect adequate penalties for delinquent taxes. Advocacy groups likely support this legislation as it provides essential support to veterans, but there may be pushback from local governments worried about how reduced penalties affect their revenue from tax collections.